American manufacturers' activity bounced in October from a three-month low, potentially getting the fourth quarter off to a good start for the U.S. economy.
IHS Markit said its flash index rose to 53.2 last month from 51.5 in September, buoyed by the fastest increase in new orders and goods produced in a year. Production has risen five straight months.
Markit said its October report "signaled that U.S. manufacturers started the fourth quarter in a strong fashion."
Manufacturers in the U.S. and around the world, though, have experienced periodic upswings in the past several years that eventually fizzled. It remains to be seen if the recent gains can be sustained or represent another sputter.
Partly because of soft manufacturing conditions and tepid business investment, experts point to the U.S. being on track to grow less than 2% in 2016 after expanding at a 2.6% pace in 2015 — a post-recession high.
