ISM Manufacturing Index Improves in September

U.S. manufacturing activity rose in September from to a three-year low, showing expansion for the month, the Institute for Supply Management said Monday.

ISM’s monthly manufacturing index reading rose to a reading of 51.5, from 49.6 in August, the group said.

Figures lower than 50 indicate contraction, while figures higher than 50 show expansion.

Economists had forecast the index would rise to a reading of 49.7, Bloomberg reported.

Eleven of 18 manufacturing industries showed expansion, and the new orders index jumped 5.2 points to a 52.3 reading.

The employment index rose 3.1 points to 54.7, while production gained 2.3 points to 49.5, ISM said.

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