WASHINGTON, D.C. – In response Friday’s report by the Federal Reserve on manufacturing output, the National Association of Manufacturers (NAM) Chief Economist David Huether has issued a statement that indicates some early signs of recover for the manufacturing sector.

“The Federal Reserve reported today that manufacturing output increased a strong 1 percent in September after an upwardly revised 1.2 percent gain in August,” said Heuther. “With manufacturing posting three consecutive strong monthly gains in production, we see early signs of recovery from the deepest drop in production in the post World War II era.
While half of the September manufacturing production gain was concentrated in the motor vehicle sector, a majority of the 19 major industries posted production gains for all three months in the third quarter.

“Further, two regional reports out of the Northeast earlier this week confirm that manufacturing conditions are continuing to get better as we head into the fourth quarter,” Heuther added. “However, we are not out of the woods yet. Continued weakness in the labor market, underscored by sluggish wage growth and continued job losses, suggest that consumer spending will likely remain weak, at least in the near term.”