US factory PMI jumps past forecasts in October, ISM says
Factory sector activity in the US accelerated substantially last month, amid a surge in new orders, the results of a closely-followed survey showed.
All of the details of the survey were strong as well, with gauges linked to supplier deliveries slowing at a faster pace, prices increasing and exports, and imports both improving.
The Institute for Supply Management's factory sector Purchasing Managers' Index jumped from a reading of 55.4 for September to 59.3 in October (consensus: 55.6).
A sub-index of new orders picked up the most from one month to the next, printing at 67.9 for October against 60.2 in September.
Production also continued to grow at a brisk clip, with a sub-index linked to it edging up from 61.0 to 63.0.
Hiring also strengthened as shown by a rise in the gauge tracking it from 49.6 to 53.2.
Subindices for inventories, prices, order backlogs, imports and export orders all rose as well.
The head of the panel, Timothy Fiore, pointed out how manufacturers were becoming more "proficient" at working around Covid-19 and expanding output with each passing month.
He also described sentiment among the panel of firms polled as "optimistic", with two positive comments made for every cautious one, although that marked a slight decrease on the prior month's reading.