Manufacturing Activity Up for October

The nation's manufacturing sector registered its highest level of activity in nearly four years in October, according to an industry report, suggesting that the solid economic growth of the third quarter is continuing in the fourth.

The Institute for Supply Management reported Monday that its manufacturing index rose to 57 last month from 53.7 in September.

It was the fourth consecutive monthly gain and pushed the index to its highest level since January 2000, when it last registered 57. The October reading was well above the 55.5 that analysts had expected.

Still, manufacturing employment continued to be weak, suggesting that factories still haven't absorbed excess capacity to the point where they are comfortable hiring.

The employment index registered 47.7 in October, up from 45.7 in September but still below the 50 that would signify growth. The report said it was the 37th consecutive month that the index reading was below 50.

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