ISM Factory Index Rises in September

.S. manufacturing rose unexpectedly in September, the Institute for Supply Management said Monday.

ISM’s manufacturing index rose to 59.4 from 53.6 in August. The index had fallen in August from 56.6 in July.

Readings above 50 indicate expansion. Manufacturing has shown expansion since May 2003.

The prices paid index saw a big jump, to 78 from 62.5 a month earlier, ISM said.

New orders, which make up about a third of the total index, rose to 63.8 from 56.4 in August.

The production index, a measure of work being performed, increased to 63.1 from 55.9.

The increase “was supported by slower deliveries and growing order backlogs,” said Norbert Ore, chairman of ISM’s manufacturing committee. “While energy prices and the impact from Hurricane Katrina are major concerns, the manufacturing sector has regained significant momentum.”

ISM, headquartered in Tempe, Ariz., surveys more than 400 companies in 20 industries, including transportation, to compile its index.