Ahead Of The Bell: ISM Manufacturing Index

NEW YORK (AP) — Economists expect growth in U.S. manufacturing picked up in October as the economy improved and demand from overseas increased, welcome signs for the fledgling recovery.

Analysts polled by Thomson Reuters expect the index from the Institute for Supply Management, a trade group of purchasing executives, will read 53 in October, compared with 52.6 in September. A reading above 50 indicates growth.

ISM's manufacturing index first showed growth in August after 18 months of contraction.

The index, which includes new orders, production, employment, inventories, prices, and export and import orders, is scheduled for release at 10 a.m. EST Monday. It is based on a survey of the Tempe, Ariz.-based group's members.

In the U.S., government spending, demand from overseas and customers needing to restock their shelves are helping manufacturers ramp up.

The government last week said economic activity rose 3.5 percent in the third quarter, the first growth after a record four straight quarterly declines. The question now is how sustainable that increase will be as consumer spending falters, Americans' incomes remain stagnant, and bank credit for small businesses and shoppers remains hard to get.