WASHINGTON - PRESIDENT Barack Obama plans to announce on Monday that he has named a top Treasury Department official, Ron Bloom, to lead an effort aimed at revitalising America's hard-hit manufacturing industry.

Mr Bloom will retain his role as a senior advisor to Treasury Secretary Timothy Geithner assigned to Mr Obama's task force on the US automotive industry.

Mr Bloom will travel with Mr Obama on a visit to Cincinnati on Monday, the Labour Day holiday, where the president will speak at an event held by the AFL-CIO labour organisation.

The White House said in a statement issued on Sunday that Mr Bloom is to work with government departments including Commerce, Treasury, Energy and Labour to develop new initiatives affecting the manufacturing sector.

The White House said Mr Obama is committed to partnering with the private sector to spur innovation, invest in the skills of American workers, and help manufacturers prosper in global markets by promoting exports.

Mr Bloom's appointment follows news that the US manufacturing sector had expanded for the first time in 18 months and had the highest monthly output in two years.

'It's a sign that we're on the right track to economic recovery, but that we still have a long way to go,' Mr Obama said in the announcement.

'We must do more to harness the power of American ingenuity and productivity so that we can put people back to work and unleash our full economic potential.' Mr Bloom said in the statement that a strong manufacturing sector is a cornerstone of American competitiveness.

'As we meet the challenges of globalisation and technological change, it is vital to have a concerted effort across the administration to support an innovative, vibrant manufacturing sector,' Mr Bloom said. -- REUTERS