The comeback of a rate-sensitive America

AxiosAugust 4, 2026en

Key sectors of the economy that spent years squeezed by high interest rates are gaining momentum. Why it matters: For years, manufacturing and construction were among the clearest signs that the Federal Reserve's tightening campaign — reversed only somewhat at the end of last year — was weighing on the economy. Now, manufacturing and construction are early sources of job growth, helped by an AI investment boom that has so far been unconstrained by still-high borrowing costs. What they're saying: "The private labor market has rebounded in 2026 due to a resurgence of the highly cyclical manufacturing sector ... while a robust buildout of data centers has propelled construction employment," Tro

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