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Federal Update on Manufacturing   NAM Chief Economist statement on economic indicators: Sees early signs of recovery  Oct. 16, 2009 In response to today's report by the Federal Reserve on manufacturing output, National Association of Manufacturers (NAM) Chief Economist David Huether issued the following statement: 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. 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. 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. Contact: Hank Cox Phone or e-mail: (202) 637-3090 NAM update archive www.nam.org