U.S. manufacturing is facing a new wave of supply chain inflation pressure. According to Sina Finance, executives and industry data showed higher spending on raw materials, energy, and freight, with some input costs rising by double digits and forcing some companies to raise product prices.
Earth Quaker Devices CEO Julie Robbins said the same goods now cost more, and the company has already raised prices twice this year. The article said rising fuel prices, import tariffs, and AI-driven demand for key electronic components are adding to inflation pressure, while the Institute for Supply Management's closely watched August survey showed price increases across more than 10 manufacturing industries and no industry reporting lower prices.
The article also said U.S. 10-year Treasury yields rose above 5% for the first time since 2023 this week, and Wall Street is betting the Federal Reserve will announce a rate hike on Wednesday. Data from the Bureau of Labor Statistics showed the producer price index for processed intermediate goods rose 11.5% year over year in August, while the index for unprocessed raw materials such as scrap metal rose 12.8%.