Manufacturing activity expanded last month at the fastest pace since May due to a surge in new orders and production.
The Institute for Supply Management says its manufacturing index read 56.9 in October, up from 54.4 in September. It was the 15th straight month of growth. A reading above 50 indicates growth.
Stocks rose after the report was released. Wall Street expected a small decline.
Manufacturing has helped drive the economy out of recession last year, but growth had slowed in recent months.
Meanwhile, manufacturing activity in China rose last month. A survey affiliated with the government said its measure rose to 54.7 in October from 53.8 in September. That caused the stock market to rise in morning trading.
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