The American factories have increased the levels of production to pre recession levels but the consumption and other sources of using these produced goods have reduced. The economists are eager that inflation is not increasing and U.S recovery cannot be lead by manufacturing alone.
Growth without inflation is something that the economists have not figured. The manufacturing levels are rising steadily but will have to stop churning out goods since the demand is not increasing. The manufacturers are recovering from the worst recession ever since 1930s and working overtime to replenish the empty inventories, growing demand overseas and upgrading equipment. The only way the federal bank can keep growth in sight is by holding the interest rates near zero.
Many manufactures have hired employees in the recent months and the average overtime has increased. There is a global demand for agricultural equipment and building construction equipment. The level of inflation dropping is the because of low fuel prices and reduced customer demand. The home construction market is sluggish at best and will be the hardest to recover with very few houses beginning construction. But the manufacturing font showing signs of recovery and banks trusting the manufacturing sector shows signs of economic improvement.