The preliminary Markit US manufacturing PMI reading for October was 54.0 – a five-month high.
Economists had estimated that the purchasing manager’s index was 52.7, compared to 53.1 prior.
Regional readings on manufacturing earlier this month indicated contractions, as the industry coped with the impacts of the strong dollar and high inventories.
The report indicated that production levels and volumes of new work grew at impressive paces. The rise in output was the fastest since March, and survey respondents said there was stronger demand from domestic markets.
Export sales increased a bit.
In the release, Markit chief economist Chris Williamson wrote,
The positive start to the fourth quarter suggests the economy may be picking up speed again after slowing in the third quarter, for which the PMI surveys pointed to annualized GDP growth of 2.2%.
The faster growth of export sales is particularly good news and will help to alleviate fears that the US economy is being hurt by the stronger dollar and slower growth in China.