U.S. manufacturing activity in October unexpectedly bounced to a five-month high, signaling possible improvement in a sector under pressure from a strong dollar and weaker global demand.
Data provider Markit notes the U.S. flash purchasing-managers' index rose to 54.0, up from 53.1 in September. In September, the index sat near a two-year low.
Economists surveyed by The Wall Street Journal expected a decline to 52.3. A reading above the 50 mark indicates expansion, while results below that level indicate contraction.
The latest reading points to the fastest upturn in business conditions since May, according to Markit.
Survey respondents mainly cited improving domestic demand and better pricing power, according the report, though global economic uncertainty and lower spending across the energy sector acted as brakes on activity.
The snapshot of nationwide manufacturing activity follows a string of recent reports out of regional U.S. Federal Reserve banks that showed ongoing manufacturing contraction in many pockets of the country.
The Markit flash report is comprised of about 80%-85% of all responses that go into the final report, which is slated for release Nov. 2.
