The Chicago Purchasing Managers’ Business Barometer rose to 60.6 in October from 60.4 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 levels above 50 suggest expansion.
Economists predicted a 58.0 reading for the indicator.
The production index rose to 69.8 from 64.3, its highest level since March 2005; the new orders index increased to 65.0 from 61.4; the order backlogs index inched up to 49.2 from 49.1; and inventories rose to 54.9 from 49.5.
The employment index rose to 54.6 from 53.4 and the supplier deliveries index was at 62.8, up from 58.4 last month. The prices paid index surged to 68.9 from 55.0.