ISM manufacturing survey beats expectations

The ISM's headline manufacturing index rose to 51.9 from 51.5 in September, beating forecasts for a reading of 51.7.

The employment index edged up to 52.9 from 49.7, while the new orders index came in at 52.1, down from 55.1 in September.

The production index rose 1.8 percentage points to 54.6 and the prices paid index came in at 54.5 from 53 the month before.

Pantheon Macroeconomics said: “After a decidedly mixed bag of regional reports, this is a decent result, confirming that the August drop in the index was a one-time fluke rather than the start of a weakening trend. Admittedly, the key new orders index dipped by three points to 52.1, and that will make it harder to keep the headline at its current level over the next few months, but strong import demand from China should prevent any further dip in orders.”

Capital Economics said: "Overall, manufacturing is gradually recovering, as the drag from the sharp dollar appreciation in 2014/2015 fades and as global manufacturing conditions improve. Unfortunately, just as manufacturing appears to be doing better, the construction sector seems to be misfiring."

Data out on Tuesday from the US Commerce Department showed construction spending fell 0.4% on the month in September, versus expectations of a 0.5% increase.