U.S. manufacturing showed signs of life in October, when the PMI, the index used to measure the strength of the industry, hit 55.7 percent, marking the third straight month of growth, according to the latest report from Tempe, Ariz.-based Institute for Supply Management. The October PMI also posted the highest reading since April 2006.
A reading above 50 percent indicates the manufacturing economy is generally in a period of expansion while a reading below 50 indicates a general contraction of the industry.
Last month's jump was driven by gains in production and employment, said Norbert Ore, chair of ISM's manufacturing business survey committee.
Its production index grew more than 7 points to 63.3 percent and the employment index grew nearly 7 points to 53.1 percent.
In total, 11 sectors reported production growth during October while only two nonmetallic mineral production and primary metals reported decreases.
October marked the first month of growth in manufacturing employment following 14 consecutive months of decline.
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