The Institute for Supply Management said Monday that the U.S. manufatruing PMI, its main gauge of the factory sector, climbed abruptly to 59.0 in October from 56.6 in September. According to the Bloomberg poll, the index was expected to drop to 56.2 points. Some analysts gave the optimistic estimate of 58.6. The index value below the threshold 50 points indicates contraction of the production activity whereas the print over 50 points tell about growth.
The flash ISM data fully coincided with the actual score for August which has been the highest manufacturing PMI since March 2011.
Despite the slowdown on the global markets, recovery of the U.S. industry has got underway. Economic growth is still driven mainly by domestic demand both in private consumption and the corporate sector.
In the near future, demand is likely to be pushed up by the upbeat data on the U.S. jobs market and low gasoline prices which have been the cheapest since 2010.