Economic activity in the U.S. manufacturing sector in October rose to its highest level in nearly four years as the pace of layoffs slowed, according to a report on Institute for Supply Management.

The ISM says its October purchasing managers’ index jumped to 57.0 — the highest since January 2000 — from 53.7 in September. Any reading above 50 in the index points to growth in the sector.

Economists were expecting a reading of a 55.0.

The report was the latest to confirm the U.S. economy’s rapid acceleration in the past few months. Last week, a reported showed that U.S. third-quarter GDP growth was the fastest in two decades.

The employment index showed the pace of layoffs slowing, rising to 47.7 from 45.7. That was the highest level for the employment index since December last year. RBC expressed disappointment with the small rise. Any reading below 50 in the index points to contraction in the sector.

A breakdown of the survey’s components revealed that the manufacturing expansion was likely to persist. New orders, the key source of future activity, rose to its highest level in more than four years at 64.3 in October compared with 60.4 the prior month.

http://www.ism.ws/ISMReport/ROB112003.htm