Fox Business host Larry Kudlow has declared that the United States is experiencing “the best ‘hard goods’ boom in decades,” citing fresh industrial production data released in mid-August 2026 as evidence of a robust manufacturing resurgence under the Trump administration.
Kudlow, who hosts the weekday program “Kudlow” on Fox Business, emphasized the strength of recent economic indicators in commentary published August 20, 2026. Durable goods—the backbone of manufacturing—have climbed 8.2 percent annually over the past three months, while business equipment investment, known as capital expenditure or capex, has surged approximately 9.5 percent annually over the same period.
The manufacturing sector has shown particular strength in high-tech categories. Electronics, computers, communications equipment, and semiconductors have averaged roughly 20 percent growth over the past three months, according to Kudlow’s analysis. The Institute for Supply Management reported manufacturing growth for seven consecutive months, while goods-producing jobs have expanded by 105,000 positions so far in 2026.
Kudlow, who previously served as Director of the National Economic Council during Trump’s first administration, has consistently highlighted economic growth as a central message for the administration. He pointed to broader economic momentum, noting that the Atlanta Federal Reserve raised its forecast for third-quarter GDP growth to 4 percent. Import prices fell for a second consecutive month, which Kudlow characterized as evidence of moderating inflation pressures.
The manufacturing boom has also been fueled by a data center construction wave. The Committee to Unleash Prosperity cited a McKinsey estimate projecting $7 trillion in construction for new data centers, potentially generating a $3.5 trillion windfall for blue-collar workers with average compensation around $100,000, according to Kudlow’s commentary. Recent manufacturing expansion announcements, including cryptocurrency-related investment and Treasury liquidity measures, have further supported investor optimism about industrial production.
Kudlow’s assessment of the manufacturing boom contrasts with earlier economic concerns. The strength in hard goods production reflects what Kudlow describes as the impact of Trump administration policies including tax cuts and deregulation. He has argued that rising long-term interest rates reflect stronger real capital returns in a booming economy rather than inflation concerns, citing Treasury Inflation-Protected Securities breakeven data as evidence that inflation expectations remain contained.
Sources
- Fox Business — video segments featuring Larry Kudlow’s commentary on economic boom and hard goods production, August 18-19, 2026
- RealClearPolitics — Larry Kudlow column detailing industrial production data, manufacturing gains, and capital expenditure trends, August 20, 2026
