2017.10.0210:30:00UTC+00U.S. Manufacturing Index Unexpectedly Increases In September

Activity in the U.S. manufacturing sector unexpectedly grew at a faster rate in the month of September, according to a report released by the Institute for Supply Management on Monday.

The ISM said its purchasing managers index climbed to 60.8 in September from 58.8 in August, with a reading above 50 indicating growth in the manufacturing sector. Economists had expected the index to dip to 50.8.

The unexpected increase by the headline index came amid a notable acceleration in the rate of new orders growth, as the new orders index jumped to 64.6 in September from 60.3 in August.

The report said the employment index also edged up to 60.3 in September from 59.9 in August, indicating a modest acceleration in the rate of job growth in the manufacturing sector.

The supplier deliveries index also surged up to 64.4 in September from 57.1 in August, while the inventories index dropped to 52.5 from 55.5.

"Comments from the panel reflect expanding business conditions, with new orders, production, employment, order backlogs and export orders all growing in September," said Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee.

On the inflation front, the prices index spiked to 71.5 in September from 62.0 in August, indicating a notable acceleration in the pace of price growth.

The ISM is scheduled to release a separate report on activity in the service sector in the month of September on Wednesday. The index of activity in the service sector is expected to inch up to 55.4.