The United States manufacturers are reportedly showing an unexpected boost while foreign manufacturers are slowing down.
On Monday, the Institute for Supply Management said that the main gauge of the U.S. factory sector escalated to a positive 59.0 in October from a previous 56.6 recorded in September. The improvement has sent the index to its previous level in August, which is the highest index since March 2011.
Manufacturers in America reported acceleration in the new orders sector in September. Production has chalked up to its highest level since May 2004. These numbers signal the fact that the U.S. economy is expanding above the 3 percent annual rate at the beginning of the fourth quarter, after a third quarter gain of 3.5 percent.
Richard Cope, the CEO of NanoLumens Inc., said that business has been fantastic. He also said that almost 50 percent of his company’s business is international, prompting customers to take in a long term goal of upgrading their facilities instead of tackling short term issues. The company’s manufacturing guide, Bradley Holcomb, said that manufacturing is currently firing on all cylinders.
The ISM report which is based on a survey of purchasing managers, displayed that the U.S. factories have outperformed most of their international competitors.
China’s factories were barely expanding with an index of just above 50. The euro zone showed a seemingly stationary index in the purchasing managers’ sector. French and Italian indices displayed contracting activities. The U.K. index was the only one that came close to that of the U.S.