A closely watched gauge of manufacturing activity in the United States increased in June to its highest level in about three years – a good sign for the American economy on the whole.

Last month, the Institute for Supply Management’s manufacturing index rose to 57.8%, a jump of nearly three percentage points from May. The tally marked the index’s highest reading since mid-2014 and also surpassed the predictions of economists, who had forecast a score of 55.6%. Readings over 50 indicate expansion.

According to ISM, 15 of America’s 18 manufacturing industries reported growth in June. These included machinery, computer and electronic products, and fabricated metal products. “Business is still very robust. (We) have continued to hire to match increased demand,” a survey respondent from the computer and electronic products industry told ISM. On the other side of the fence, the three industries that contracted were apparel, leather & allied products; textile mills; and primary metals.

As part of its analysis, ISM reported that its index on new orders in the manufacturing sector increased from 59.5% in May to 63.5% in June. Similarly, the production index shot up more than five percentage points to 62.4%; the manufacturing employment index accelerated from 53.5 in May to 57.2 in June.

“Comments from (respondents) generally reflect expanding business conditions, with new orders, production, employment, backlog and exports all growing in June compared to May and with supplier deliveries and inventories struggling to keep up with the production pace,” said Timothy R. Fiore, chair of ISM’s Manufacturing Business Survey Committee.