U.S. manufacturing is picking up, as indicated in the latest data released by the Tempe, Arizona-based Institute for Supply Management.
The group's purchasing managers index rose to a level of 51.7 in October, the highest level since May, showing that manufacturing in the U.S. is gaining strength despite continuing woes in Europe and slowdown in Asia. A reading of above 50 indicates expansion and below 50 signifies a contraction. The index had dipped below 50 in June, July and August but rebounded to 51.5 in September.
The ISM factory employment index fell to 52.1 in October from 54.7 in September. That index had hit a high for the year of 57.3 in April. The PMI index for new orders rose to 54.2 in October from 52.3 in September, after contracting in June, July and August.