USA TODAY: … A 12.6% surge in spending on non-residential structures — notably new and expanding factories — was a big reason for last week’s upward revision of second quarter economic growth. The Commerce Department said the economy expanded at a 4.6% annual rate, up from its previous 4.2% estimate and the strongest growth in 2 ½ years.
An auto sales boom, the housing recovery and the oil and natural gas drilling frenzy are all forcing manufacturers to build or enlarge plants to supply these industries. Factory output is up 3.2% so far this year after rising 2.6% in 2013.
Spending on construction or renovation of factories is up 12% so far this year after being virtually flat in 2013, Census Bureau figures show. After declining steadily since 1998 as much of U.S. production moved offshore, the number of US factories has stabilized since last year and should grow modestly over the next couple of years, says Dan Meckstroth, chief economist of MAPI, the manufacturing industry’s research arm… (more)
