Activity at U.S. factories grew for the first time in four months, according to the ISM manufacturing report Monday.
NEW YORK (CNNMoney) -- U.S. manufacturing activity grew in September for the first time in four months, according to a closely watched survey of executives from the sector.
The Institute of Supply Management's monthly reading came in at 51.5. Any ready reading in the ISM above 50 indicates growth in manufacturing activity, and the September reading was the first above 50 since May. The three-month slump had followed a string almost three years of readings that showed growth in the sector.
Monday's reading not only topped the forecast of 49.2 from economists surveyed by Briefing.com, it also bucked the trend of a slowdown in other major manufacturing centers around the globe.
Manufacturing has been slowing around the globe as the European sovereign debt crisis has cut demand for goods in that key market. A reading on Chinese manufacturing from the government there, also released Monday, also came in below 50, while a separate reading on Chinese factories from HSBC last week showed an even deeper slump. Also Monday, the final September reading from the eurozone came in at 46. That wasn't as low as the August reading, but it did mark the seventh straight month that manufacturing has declined across those nations.
Manufacturing has been one of the areas of the strength in the U.S. economic recovery, beginning in the summer of 2009. The sector has been steadily adding jobs since early 2010. The ISM survey also showed 23% of executives adding jobs, compared to only 18% that have fewer workers. That pace of hiring is also up from August.
The report comes ahead of this Friday's U.S. jobs report. Economists surveyed by CNNMoney gave a preliminary forecast last week that the report would show employers added 110,000 jobs to their payrolls in September, despite a loss of 10,000 government jobs in the period. The unemployment rate is expected to edge up to 8.2% from 8.1% in August.
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