Shares of industrial and transportation companies moved higher as factory activity rebounded.
Factories across the globe bounced back strongly in October, as manufacturers hired more people and ramped up production of consumer goods in hot demand despite rising coronavirus infections. Fresh surveys of purchasing managers for manufacturers showed a continuing divide between companies that are making products – from cars to electronics – and companies providing face-to-face services that people are shunning. The surveys released Monday indicated that the manufacturing sector continued to revive as the fourth quarter began, especially in global powerhouses such as the U.S. and Germany.
The Institute for Supply Management said its purchasing managers index rose to 59.3 in October from 55.4 in September, the sixth straight month of expansion. Firms reported a surge in new orders as customer inventories shrank. Supply-chain problems continued to constrain production but at a slower rate, the report said. Firms also reported increased hiring for the first time in 14 months.
Meanwhile, shares of cruise operators were hit after Norwegian Cruise Line Holdings announced an extension of its cruise suspensions until next year.
Write to Amy Pessetto at [email protected]
(END) Dow Jones Newswires
November 02, 2020 17:44 ET (22:44 GMT)
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