Washington, DC, Nov. 3--Manufacturing activity picked up in October, expanding for the fourth consecutive month and adding steam to a recent run of encouraging readings on the health of the U.S. economy.
The Institute for Supply Management reported that its Manufacturing Index strengthened to 57.0 from 53.7 in September. That was better than the consensus forecast of economists for a reading of 55.5, and the strongest showing since January of 2000.
An index reading above 50 indicates expansion; one below 50 indicates that manufacturing activity is contracting. From March through June, the manufacturing index was below 50.
Norbert J. Ore, chairman of the institute's manufacturing business survey committee, said in a statement accompanying the report that new orders continued to lead the manufacturing recovery.
He added: "Production made a sharp swing upward during October, signifying growth for the sixth consecutive month."
Still, manufacturing employment continued to decline, suggesting that factories still haven't absorbed excess capacity to the point where they're comfortable hiring.
The employment index registered 47.7 in October, up from 45.7 in September but still well below the 50 that would signify growth.
