US manufacturing sector expands at its fastest pace in years

The U.S. manufacturing sector expanded at its fastest pace in years in October despite a partial government shutdown during the first half of the month, according to one industry report, even as a separate reading showed factory output grew at its slowest rate in a year last month, Reuters reported. The Institute for Supply Management said its index of national factory activity rose to 56.4 in October, its best showing since April 2011. Financial data firm Markit said its final U.S. Manufacturing Purchasing Managers Index stood at 51.8 last month, beating the preliminary October reading but notching the worst final showing since October 2012. Both figures indicated expansion in the manufacturing sector and ISM's figure beat expectations of a slight slowdown in the growth rate. The two surveys use some different methodologies, including one related to seasonal adjustment. October was the fifth consecutive month of quicker growth in the goods-producing sector since it contracted in May, according to ISM's data. The mixed results in Friday's readings underscored uncertainty over the state of the world's largest economy, just days after the Federal Reserve suggested it still sees a need for stimulus and maintained its $85 billion per month bond-buying program to prop up the economy.