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ISM manufacturing index hits 13-year high in wake of hurricanes

October 02, 2017

Economic activity in the manufacturing sector expanded in September at a faster pace than August, according to the Institute for Supply Management’s purchasing managers index for US manufacturing. September’s index reading was 60.8, up from August’s reading of 58.8. Bloomberg reported American manufacturing expanded at the fastest pace in 13 years, in part because of effects from two major hurricanes. Some ISM respondents indicated new orders because of hurricanes, which destroyed merchandise in the Houston area.

In addition, the employment portion of the index rose to a reading of 60.3 in September from 59.9 in August, also indicating expansion at an increased pace.

Any reading above 50% generally indicates improving conditions.