The Chicago Purchasing Managers' Business Barometer gained to 56.2 in October from 48.7 in September, the National Association of Purchasing Management-Chicago said Friday.
The data is compiled on a seasonally adjusted basis. An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
Economists polled by Thomson Reuters predicted a 49.0 reading for the index.
"New Orders jolted higher, bolstered by planned and unplanned orders along with some intentional inventory build ahead of the pending winter and holiday seasons. Meanwhile, Production was pushed into overdrive, adding nearly 20 points, rebounding after September's more than six year low. Production increased to meet the surge in demand with respondents citing a boost to output from special projects and research and development ahead of year-end," according to a release.
