Upbeat factory report catches economists by surprise
Factory hiring and production increased in September, the Institute for Supply Management said today. Other data released today also showed strong demand for motor vehicles, with sales on track to surpass August’s rate. Construction spending unexpectedly rebounded in August, Reuters said. September marked the 26th straight month of expansion in manufacturing, and the factory report implied that an outright contraction in output would probably be avoided, Reuters said. The Institute for Supply Management said its index of national factory activity rose to 51.6 last month from 50.6 in August. New orders fell for the third month. Economists had expected the index to edge down to 50.5. A reading above 50 indicates expansion in manufacturing.