WASHINGTON (dpa-AFX) - Growth in U.S. manufacturing activity accelerated by much more than expected in the month of October, according to a report released by the Institute For Supply Management on Monday.
The ISM said its purchasing managers index climbed to 59.3 in October from 55.4 in September, with a reading above 50 indicating growth in manufacturing activity. Economists had expected the index to inch up to 55.8.
'Manufacturing performed well for the third straight month, with demand, consumption and inputs registering growth indicative of a normal expansion cycle,' said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.
He added, 'While certain industry sectors are experiencing difficulties that will continue in the near term, the overall manufacturing community continues to exceed expectations.'
The bigger than expected increase by the headline index came as the new orders index jumped to 67.9 in October from 60.2 in September and the production index rose 63.0 from 61.0.
The employment index also climbed to 53.2 in October from 49.6 in September, indicating job growth in the manufacturing sector.
The report said the prices index also increased to 65.5 in October from 62.8 in September, pointing to a continued increase in prices.
On Wednesday, the ISM is scheduled to release a separate report on activity In the service sector in the month of October.
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