The Institute for Supply Management (ISM) reported on Monday, Nov. 2 that its index on factory activity in the United States surged to a reading of 59.3 in October. The highest tally in 24 months, the reading came on the heels of September’s 55.4 showing. Readings above 50 point to expansion in the sector.

“This [October] figure indicates expansion in the overall economy for the sixth month in a row after a contraction in April, which ended a period of 131 consecutive months of growth,” said Timothy R. Fiore, who chairs ISM’s survey committee. 

@ism: Manufacturing sector expanded in October at the fastest pace since September 2018, with the sector continuing to rebound from COVID-19-related weaknesses in the spring. pic.twitter.com/cKmib4PA2a

— Chad Moutray (@chadmoutray) November 2, 2020

Fiore noted that ISM’s new orders sub-index, which can indicate how manufacturing will fare in the months ahead, soared to a reading of 67.9 in October, up from 60.2 in September. Last month’s score is the highest tally since January 2004.

ISM’s manufacturing employment gauge jumped too, rising from 49.6 in September to 53.2 in October. The reading means that employment expanded in the manufacturing sector – the first time that’s happened since July 2019.

Due to societal/business shutdowns and other economic fallout tied to the COVID-19 pandemic, the United States’ manufacturing sector contracted at a historic pace of 31.4% during the second quarter of 2020. Helped by federal government stimulus money and the reopening of society, manufacturing grew at a rate of 33.1% in the third quarter (July through September).

Manufacturing accounts for more than 11% of the U.S. economy. In 2019, the North American promotional products industry generated $2.06 billion in revenue through sales to clients in the manufacturing sector, according to research from the 2020 State of the Industry report, a study from ASI’s flagship publication Counselor. In 2021, ASI research projects that promo firms will do $1.84 billion in sales with manufacturers.

Caption: Promo sales to the manufacturing sector in North America.