Manufacturing at a 3-1/2 Year High

CNNMoney.com (11/2, Rooney) – The Tempe, Ariz.-based Institute for Supply Management's (ISM) manufacturing index rose to a reading of 55.7 in October from 52.6 the month before. It was the highest reading since April 2006 when the index registered 56. "The jump in the index was driven by production and employment," said Norbert Ore, chair of the ISM's manufacturing business survey committee. "Overall, it appears that inventories are balanced and that manufacturing is in a sustainable recovery mode." Production in the manufacturing sector rose for the fifth month in a row, led by strength in plastics and rubber products, furniture and apparel. The gain in production came as the index of new orders for manufactured goods rose for the fourth consecutive month.