A report from the Institute for Supply Management (ISM) showed on Monday the U.S. manufacturing sector’s activity continued its rebuilding in October.

The ISM's index of manufacturing activity came in at 59.3 percent last month, 3.9 percentage points from the September reading of 55.4 percent. The October reading pointed to the sixth straight month of growth in factory activity and its strongest expansion since September 2018.

Economists' had forecast the indicator to increase to 55.8 percent.

A reading above 50 percent indicates expansion, while a reading below 50 percent indicates contraction.

According to the report, the New Orders Index stood at 67.9 percent, an advance of 7.7 percentage points from the September reading, while the Production Index registered 63 percent, an increase of 2 percentage points compared to the September reading, the Employment Index was at 53.2 percent, a surge of 3.6 percentage points from the September reading and the Supplier Deliveries Index came in at 60.5 percent, up 1.5 percentage points from the September figure.

Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee, noted that the manufacturing economy continued its recovery in October. “Survey Committee members reported that their companies and suppliers continue to operate in reconfigured factories; with every month, they are becoming more proficient at expanding output,” he said. “Panel sentiment was optimistic (two positive comments for every cautious comment), a slight decrease compared to September”. He also added that the past relationship between the PMI and the overall economy indicates that the PMI for October (59.3 percent) corresponds to a 4.8-percent increase in real gross domestic product (GDP) on an annualized basis.