Manufacturing growth picks up in October: ISM

NEW YORK (BestGrowthStock) – The pace of growth in the U.S. manufacturing sector quickened unexpectedly in October, suggesting a sluggish economic recovery may be gaining some traction, according to an industry report released on Monday.

The Institute for Supply Management said its index of national factory activity rose to 56.9 from 54.4 in September. That was the highest since May and well above the 54.0 median forecast of 77 economists surveyed by Reuters.

A reading above 50 indicates expansion in the sector. While manufacturing has grown every month since August 2009, the pace of growth had been slowing in recent months.

In October, the index of sector employment rose to 57.7 from 56.5 in September. The U.S. labor market has remained sluggish this year, with the jobless rate at 9.6 percent.

The prices paid component edged up to 71.0 from 70.5 while new orders jumped to 58.9 from 51.1.

(Editing by James Dalgleish)

Manufacturing growth picks up in October: ISM