The U.S. economy remains strong, as factory output jumped last month.
The economy was led by big gains in the production of cars, computers and furniture.
The Federal Reserve said Friday that manufacturing output rebounded 1.2 percent in February. This was the strongest advance in the economy since October. This report followed three months of weak or negative readings. Furthermore, factory production has increased a healthy 2.5 percent in the past year.
Manufacturers are benefiting from robust spending by consumers and businesses and solid growth overseas. The dollar has declined in value over the past year. A weaker dollar makes U.S. goods cheaper overseas. Many economists expect last year’s tax cuts and rising optimism among business owners to fuel greater investment in machinery and information technology equipment.
“The big picture in this report is that the manufacturing upswing is back on track.” This according to Ian Shepherdson, chief economist at Pantheon Economics.