ISM Manufacturing Index Improves in October

U.S. manufacturing activity improved in October, the Institute for Supply Management said Monday.

ISM’s monthly factory index rose to a reading of 56.9, from 54.4 in September, the group said. Figures greater than 50 indicate expansion.

The reading beat economists’ forecasts of a decline to a 54 reading, Bloomberg reported.

Both new orders and production making significant gains in October, said Norbert Ore, chair of ISM’s business survey committee, who added that since hitting a peak in April, the trend for manufacturing has been toward slower growth.

“However, this month’s report signals a continuation of the recovery that began 15 months ago, and its strength raises expectations for growth in the balance of the quarter,” he said in a statement.

The ISM factory index measures manufacturing components of the economy.