The overall economy grew for the sixth straight time after seven months of contraction, while the manufacturing sector expanded for the third time after 18 months of contraction, according to a report issued yesterday by the Institute for Supply Management.
The ISM index jumped to 55.7 in October from 52.6 in September.
Economists polled by Thomson Reuters predicted a 53.0 reading.
The closely watched prices paid index rose to 65.0 from 63.5. The employment index was at 53.1, up from 46.2 .