Strong manufacturing data on the day President Trump is set to speak about infrastructure and environmental regulation plans – good sign.

I have been talking and writing about a Manufacturing Renaissance, which has begun, and it is gaining momentum. It could move into overdrive with even more regulatory relief, lower taxes and infrastructure spending. Investors shouldn’t ignore what is happening, even as Washington, D.C. has stumbled to move big legislative parts of the Trump Economic Agenda.

The Empire State Fed Manufacturing Index edged higher in August to a current general business read of 25.2, the highest since September 2014 (30.2).

Other Fed regions will report on manufacturing, including the Philly Fed report, on Thursday.

Confidence Adding Steam

The surge in current business conditions is encouraging, but history tells us these periods in time must be seized upon.Today, President Trump will discuss his infrastructure plans, again. I like the action in several names ahead of his scheduled appearance:

• US Steel (X)
• Vulcan Materials (VMC)
• US Concrete (USCR)

Big spikes in 2007, 2009 and 2014 were followed by log stretches of declines. That doesn’t mean this indicates a top. On the contrary, I think the action in manufacturing is only just beginning, but it will need exogenous boost beyond organic demand and investment.

With the early rally fading quickly, the stage is set for the market to move higher, perhaps signaling smart money accumulation.