Growth in U.S. Factory Activity Accelerates

Manufacturing activity in the U.S. expanded at a faster pace in October, according to the Tempe, Ariz.-based Institute for Supply Management.

The institute's factory index rose to a five-month high of 51.7 last month from 51.5 in September. A reading over 50 indicates expansion. October marked the second consecutive month of growth after three months of contraction.

ISM's index of new orders rose robustly for the second straight month. A gauge of production posted a strong gain in October. But measures of employment and prices registered slower growth.

The research group says the purchasing managers its surveys cite concerns about Europe's slumping economy and weaker orders in the steel and automotive industries.