The index of business activity in the US manufacturing sector (ISM Manufacturing) jumped to 59.3 points in October 2020 – the highest since August 2018 – from 55.4 points in September, according to data from the Institute for Supply Management (ISM).
Analysts on average expected the index to rise to 55.8 points, Trading Economics reported.
A value of the index above 50 points signals an increase in business activity in this segment of the economy, below 50 points – about its decline.
The sub-index that tracks the arrival of new orders in October rose to 67.9 points from 60.2 points a month earlier, new export orders – up to 55.7 points from 54.3 points, the production indicator – up to 63 points from 61 points, employment – up to 53.2 points from 49.6 points.
“The recovery in industrial activity continued in October,” said Tim Fiore, ISM's Manufacturing Survey Officer. “Companies and their suppliers continue to operate in a changed environment, and each month they are increasing their production more skillfully.”
The final value of the purchasing managers' index (PMI) in the industrial sector, calculated by IHS Markit, was 53.4 points last month, which is the highest since January 2019, up from 53.2 points a month earlier. The preliminary value indicated the growth of the indicator to 53.3 points.