Federal Data Shows Sustained Recovery in Manufacturing

Three federal data reports released today provide further evidence of a sustained recovery in the manufacturing sector. In addition to factory output increasing by 1% for the second month in a row, consumer spending increased for the 7th month at a 0.4% rate-twice the previous month's rate. The Commerce Department indicated that inventories increased by 0.4% as well, suggesting that demand for manufactured goods has become sustained.

"The manufacturing recovery is getting more diffuse, with 17 of 19 major sectors increasing production," said David Huether, chief economist at the National Association of Manufacturers in an AP story. "It looks more durable and deeper."

For industrial energy efficiency programs, this new data suggests it is time to be reaching out to their manufacturing customers to see assess their plans for capital expansions. Getting in on the investment cycle is the least-cost opportunity for manufacturing energy efficiency.