Manufacturing Activity Driven Up By Employment, Larger Orders

U.S. manufacturing output grew in October as a result of bigger new order volumes and an uptick in employment.

The U.S. Manufacturing Purchasing Managers' Index, a survey by IHS Markit, rose to 54.6 for October compared to 53.1 the month before. October showed the fastest improvement in the industry since the beginning of this year.

Economists polled by The Wall Street Journal expected 54.5. When the index is above 50, the sector is expanding. Below 50 means it is contracting.

"Production volumes jumped higher on the back of a substantial improvement in order book inflows, in part due to supply chains returning to normal after the hurricanes but also reflecting a combination of strong underlying demand," IHS Markit Chief Business Economist Chris Williamson said.

Employment growth hit a 28-month record and supplier delivery times grew the most since February of 2014, IHS Markit said. Inflation also rose because of hurricane-fueled supply shortages. New business rose as a result of bigger client bases. Export orders also increased with firmer demand from overseas clients.

Write to Allison Prang at allison.prang@wsj.com.

(END) Dow Jones Newswires

November 01, 2017 10:57 ET (14:57 GMT)