I think the “goodness” of this news might be overstated. A 2.3% increase in 15 months is not really indicative of a sharp rise, especially if this increase is in a dollar amount not adjusted for inflation. That it hasn’t retracted is good news, but to paint a 7.7% manufacturing rise in computers and electronics in a market that has seen a 40.5% rise in imports. Some of this rise both foreign and domestic is surely related in the increase of data center capacity, but I am also guessing there has been an outsized inflationary impact on this sector because demand has raised some component costs much higher than inflation. I’m not saying the analysis here is wrong, but the article only provides enough information for “may be picking up speed” part of the headline. Greg Ip is obviously much more qualified to provide an analysis, but I hesitate to totally buy into his WSJ narratives (such as The Iran War Is Making the American Economy More Dominant Than Ever). When he starts talking about increased investment in plants and equipment in the sector, I’ll listen a bit closer.

Thanks, and good evening.