U.S. September ISM Factory Index Rises to 59.4 From 53.6
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U.S. September ISM Factory Index Rises to 59.4 From 53.6
Oct. 3 (Bloomberg) -- U.S. manufacturing unexpectedly accelerated in September, suggesting the recovery from two Gulf Coast hurricanes will be rapid, a private survey showed.
The Institute for Supply Management said today its factory index rose to 59.4 from 53.6 in August. Readings greater than 50 indicate growth. The institute's prices paid index, which measures how much companies pay for raw materials and supplies, rose to 78.0 in September from 62.5.
The report suggests businesses are looking past the initial shock of surging energy prices following Hurricane Katrina. While energy costs will probably restrain expansion in production in the next few months, manufacturing has been in an uninterrupted expansion since June 2003, and post-hurricane rebuilding may spur more factory growth by year-end, economists said.
``There was some weakness because of high energy prices and Katrina, but I think this will be temporary,' said Dan Jester, an economist at Economy.com in West Chester, Pennsylvania, before the report. ``Fundamentals are strong right now for manufacturers: inventories are low and businesses are flush with cash and are poised to spend more.'
To contact the reporter on this story: Joe Richter in Washington at Jrichter1@bloomberg.net
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