The U.S. manufacturing sector expanded in September, shaking off three months of weakness as new orders and employment picked up, an industry report showed on Monday.
PETER JANKOVSKIS, CO-CHIEF INVESTMENT OFFICER AT OAKBROOK INVESTMENTS LLC IN LISLE, ILLINOIS
"Numerically that is a pretty small amount but in terms of looking at the number it's the difference between seeing contraction and seeing growth. So psychologically that's pretty important."
DAVID SLOAN, ECONOMIST, 4CAST LTD, NEW YORK
"It seems like a reasonably good number. It is quite an encouraging breakdown because you had quite a bounce in new orders. Employment was also improved which was a little surprising. We have seen mixed regional surveys -- it seems like the Chicago one was a bit of an aberration.
"It seems that on balance the evidence is getting slightly better although it has still gone from a minor contraction to small growth. I wouldn't get overly excited about it but it is still slightly positive, suggesting things are getting a little better rather than a little worse."
JOSEPH TREVISANI, CHIEF MARKET STRATEGIST, WORLDWIDE MARKETS, WOODCLIFF LAKE, NEW JERSEY
"We have a slightly better number, new orders in particular will help to allay some of the recent concern that manufacturing was leading the U.S. into recession. This will help support the euro as it relieves overall concern on the U.S. somewhat. But it won't last because the world economy and the U.S. are still facing a drastic slowdown."
CRAIG DISMUKE, CHIEF ECONOMIC STRATEGIST, VINING SPARKS, MEMPHIS, TENNESSEE
"This is surprisingly strong given the new orders we have seen in recent months. This is most likely going to be temporary. The manufacturing sector is not as bad as previously thought."
ADAM SARHAN, CHIEF EXECUTIVE OF SARHAN CAPITAL IN NEW YORK
"Despite a recent spate of weaker-than-expected data from across the world, markets are looking forward. There is a lot of hope that the worst-case scenario is off the table not only for now, but for good. Long-term expectations for the economy are bright.
"The U.S. economy is growing at a slow pace, but it is still growing. The ISM number suggests that things are not that bad. We're not quite at the point where things are good, but this indicates strongly that things are not so bad."
STOCKS: U.S. stocks added to their earlier gains.
BONDS: U.S. Treasury debt prices erased their previous gains and turned negative.
FOREX: The dollar extended its gains versus the Japanese yen.
(Americas Economics and Markets Desk; +1-646 223-6300)