Investing.com - Manufacturing activity in the U.S. returned to expansion in September, bouncing back from what had been a seven-month low the previous month, according to an industry report released on Monday.
The Institute for Supply Management said its index of manufacturing activity rose to 51.5 last month from August’s reading of 49.4.
Analysts had forecast a lesser increase to 50.3.
A reading above 50.0 indicates expansion in the manufacturing sector, below indicates contraction.
The new orders index also exited contraction, rising to 55.1 in September from 49.1 a month earlier.
The employment index improved to 49.7 last month from the prior 48.3, compared to a forecast for an increase to 49.0.
The prices paid index remained unchanged, as expected, at 53.0 from 53.0.
The release indicated that nine of the 18 industries reported an increase in new orders in September (up from six in August), and 10 of the 18 industries reporting an increase in production in September (up from eight in August).
In an immediate reaction, EUR/USD was trading at 1.1217 from around 1.1222 ahead of the release of the data, GBP/USD was at 1.2833 from 1.2843 earlier, while USD/JPY was at 101.44 from 101.38 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 95.62, compared to 95.57 ahead of the report.
Meanwhile, U.S. stock markets were lower after the open. The Dow 30 fell 81 points, or 0.44%, the S&P 500 dropped 12 points, or 0.55%, while the Nasdaq Composite traded down 24 points, or 0.45%.
Elsewhere, in the commodities market, gold futures traded at $1,315.35 a troy ounce, compared to $1,316.55 ahead of the data, while crude oil traded at $48.10 a barrel from $48.24 earlier.