NEW YORK: The U.S. manufacturing sector expanded at its fastest pace in years in October despite a partial government shutdown during the first half of the month, according to one industry report, though a separate reading cast doubt on the strength of factory activity growth.
The Institute for Supply Management said on Friday its index of national factory activity rose to 56.4 in October, its best showing since April 2011. Financial data firm Markit said its final U.S. Manufacturing Purchasing Managers Index stood at 51.8 last month, beating the preliminary October reading but notching the worst final showing since October 2012.
Both figures indicated expansion in the manufacturing sector and ISM’s figure beat expectations of a slight slowdown in the growth rate. The two surveys use some different methodologies, including one related to seasonal adjustment.
Treasuries prices sagged after the ISM data, while the U.S. dollar extended gains against both the euro and the yen. On Wall Street, stocks initially held on to early gains but were trading slightly lower midday.