By Anna Louie Sussman
WASHINGTON -- A gauge of U.S. factory activity rose in October, a sign the manufacturing sector could be stabilizing after two years of challenging conditions.
The Institute for Supply Management on Tuesday said its purchasing manufacturers' index rose to 51.9 in October from 51.5 in September. A reading above 50 indicates that factory activity is growing, while a reading under 50 signals contraction.
Economists surveyed by The Wall Street Journal had expected an October reading of 52.0.
The index for new orders dropped, but those for production and employment both rose.
Bradley Holcomb, who oversees the ISM's survey, said the report showed the sector chugging along in slow growth mode, but that growth was"starting to feel a little more consistent," a promising sign for the fourth quarter.
He noted comments from survey participants about future business conditions were generally positive, with just a few exceptions. He cited improving conditions in the global economy and the imminent conclusion of the U.S. presidential election.
"It will be good for all of us and the country to get that behind us so we kind of know where we're going," Mr. Holcomb said.
U.S. companies have been slow to invest in new equipment and structures, especially in the energy industry. But the softness has extended to other sectors as well, such as transport and residential construction, dragging down overall economic growth.
A separate measure of manufacturing-sector activity from private data provider Markit showed its manufacturing purchasing managers index rebounded in October to 53.4, its highest level in a year, with strength in new orders andoutput. That follows a reading of 51.5 in September.
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(END) Dow Jones Newswires
November 01, 2016 11:01 ET (15:01 GMT)
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