ISM at 30-month high
A key gauge of manufacturing expanded at its fastest pace since April 2006, suggesting the economic recovery that likely began late in the summer is gathering momentum.
The ISM Manufacturing Index improved from 52.6 in September to 55.7 in October, topping forecasts by about two percentage points and rising in nine of the past ten months. A reading above 50 is expansionary.
New orders pulled back slightly but continued to expand, falling 2.3 points to 58.5. But production surged 7.6 points to 63.3 as companies continue to replenish depleted stockpiles in the wake a the dearth in activity late last year and early this year.
Notably, employment moved above 50 for the first time in 15 months, indicating that workers are needed to meet expanding output. More importantly, it is a signal that firms are slowly growing more optimistic that the recovery in place is more than just a temporary burst of economic activity.
0 comments:
Post a Comment