ISM Manufacturing Index Improves in October

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

ISM’s monthly factory services index rose to a 55.7 reading, from 52.6 in September, ISM said in its monthly report. Figures of more than 50 indicate expansion, while below that show contraction.

“The manufacturing sector grew for the third consecutive month in October, and the rate of growth is the highest since April 2006,” said Norbert Ore, chair of ISM’s business survey committee.

“Overall, it appears that inventories are balanced and that manufacturing is in a sustainable recovery mode,” he said in a statement on the group’s Web site.

Production jumped 7.6 points to a 63.3 reading, while employment rose 6.9 points to 53.1.

ISM’s factory index measures manufacturing components of the economy.