"This report removes some of the concern that manufacturing is contracting, even though we're definitely seeing slower growth"
- Gus Faucher, a senior economist at PNC Financial Services Group Inc.
The U.S. manufacturing sector rose unexpectedly last month, after three consecutive months of contraction, indicating industry within the sector are stabilizing. The Institute for Supply Management reported that the ISM manufacturing PMI rocketed to 51.5, up from 49.6 in August, while analysts had expected factory index to remain under 50, a level which indicates industry contraction, for the fourth straight month, at 49.7.
"While 51.5 is still pretty low, consistent with very weak growth in manufacturing output, the improvement from a month ago is significant," said Jim O'Sullivan, chief economist at High Frequency Economics.
"This report removes some of the concern that manufacturing is contracting, even though we're definitely seeing slower growth," said Gus Faucher, a senior economist at PNC Financial Services Group Inc. in Pittsburgh.
The Standard & Poor's 500 advanced 0.27 per cent to 1,444.49. The Dow Jones Industrial Average gained 0.58 per cent to 13,515.11. The Nasdaq Composite slid 0.09 per cent to 3,113.53.
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