US MANUFACTURERS HIT BY SURGING INPUT COSTS FROM ENERGY, TARIFFS, AI DEMAND

American industrial firms are grappling with a significant rise in supply chain inflation, driven by higher energy prices, import tariffs, and intense demand for electronics from the AI sector. The producer price index for intermediate goods surged, with unprocessed materials up 12.8% year-over-year in August. Concurrently, record diesel prices and a 16% annual increase in freight costs are squeezing manufacturers' margins.