Investing.com - Manufacturing activity in the U.S. improved more than expected in October, fueling optimism over the strength of the economy, industry data showed on Tuesday.
In a report, the Institute for Supply Management said its index of purchasing managers inched up to 51.9 last month from a reading of 51.5 in September. Analysts had expected the manufacturing PMI to rise to 51.7 in October.
The New Orders Index registered 52.1, a decrease of 3 points from the September reading of 55.1.
The Production Index registered 54.6, 1.8 points higher than the September reading of 52.8.
The Employment Index registered 52.9, an increase of 3.2 points from the September reading of 49.7.
The Prices Index registered 54.5 in October, an increase of 1.5 points from the September reading of 53.0.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Comments from the panel are largely positive citing a favorable economy and steady sales, with some exceptions.
EUR/USD was trading at 1.1030 from around 1.1027 ahead of the release of the data, GBP/USD was at 1.2227 from 1.2233 earlier, while USD/JPY was at 104.80 from 104.82 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 97.98, compared to 98.00 ahead of the report.
Meanwhile, U.S. equity markets turned marginally lower after the open. The Dow 30 dipped 0.05%, the S&P 500 shed 0.1%, while the Nasdaq Composite slipped 0.1%.
Elsewhere, in the commodities market, gold futures traded at $1,290.25 a troy ounce, compared to $1,290.00 ahead of the data, while crude oil traded at $46.79 a barrel from $46.86 earlier.