Jonathan Basile, an economist at Credit Suisse, said December and January marked the best two months of growth for manufacturing since the summer of 2009, when the recession ended.
Basile also pointed to a regional survey conducted in February by the Federal Reserve Bank of New York released Wednesday, which showed factory activity in that region grew for the third straight month. That suggests the strong momentum in January carried over into February. And even though a measure of hiring in the New York survey dipped, it still indicated more hiring ahead.
"It looks like we're set up for a little faster growth in the coming months," Basile said.
Factory output has risen 16.7 percent from its low point during the recession, in June 2009, according to the Fed's industrial-production report. It is still 7.1 percent below its December 2007 peak.
In January, auto production climbed 6.8 percent, the largest gain since July 2010. That coincides with the best growth in car sales in more than two years.
Industrial-machinery production increased 2.2 percent, after an even larger gain in December. Computer and electronics production moved up 1.4 percent.
Two strong months of manufacturing growth are among other encouraging signs that show the economy could grow at a steady pace this year. Five straight months of solid job growth has lowered the unemployment rate to 8.3 percent, the lowest level in nearly three years.
Several factors could weigh on growth this year. Gas prices are rising again. Europe's financial turmoil could weaken demand for U.S. exports. And another year of weak pay increases could force consumers to cut back on spending.
Still, the economy is growing, and manufacturing is accelerating. That has helped drive the slow but steady recovery. The economy grew at an annual pace of 2.8 percent in the final three months of last year, a full percentage point higher than the previous quarter. Factory activity expanded at the fastest pace in seven months in January.
