US factory activity expands in September

US manufacturing expanded in September to defy expectations of a decline, according to a survey published today.

US manufacturing expanded in September to defy expectations of a decline, according to a survey published today.

The Institute for Supply Management (ISM) said its index of national factory activity rose to 59.4 in September from 53.6 in August, outstripping economists' median forecast for a drop to 52.

A reading above 50 denotes expansion in the sector, which has been growing since February 2003.

The ISM's employment gauge rose to 53.1 from 52.6 in August. New orders, a signal of future growth, rose to 63.8 from 56.4. The prices paid index jumped to 78.0 from 62.5.