The Institute of Supply Management said today that the latest factory index for October rose at the fastest pace in more than three years. The index – which rose to 55.7 – suggests that the US economy is growing after months of contraction.
“The recovery remains firmly on track,” said John Herrmann, president of Herrmann Forecasting in Summit, New Jersey, whose projection for the index to rise to 55 matched the highest expectation. Manufacturing is “laying the groundwork for a very strong inventory restocking cycle.”