US factory activity grew in October at a faster-than-forecast rate as factories filled customer inventories, the Institute for Supply Management said today.
The ISM manufacturing index rose to 57% last month from 53.7% in September, the strongest pace since January 2000 and above the consensus forecast of 55.4%.
The new orders index rose to 64.3% in October from 60.4% in September. This is the highest level since June 1994.
The production index rose to 62.6% in October from 57.3% in September. Readings over 50% indicate that most manufacturing firms surveyed said business was getting better, or not disimproving.
The ISM index is considered one of the most reliable leading indicators for the factory sector and, by extension, the broader economy.
