Investing.com - Manufacturing activity in the U.S. Midwest unexpectedly strengthened to its strongest level in three years in October, an index released on Tuesday showed.
The Chicago Purchasing Management Index rose to 66.2 from 65.2 in September. It was the highest level since October 2014, which matched the previous high of March 2011.
Economists had forecast a reading of 61.0.
A reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
New orders rose to the highest level since June and the second highest since May 2014 while production hit its highest level since August 2014.
“Firms kicked off Q4 in buoyant mood with only 12% expecting activity to decline between now and the close of the year," said Jamie Satchi, economist at index compiler MNI Indicators.
The Chicago PMI is the last of the major regional manufacturing gauges before the national Institute for Supply Management manufacturing report is released.