Factory activity in the central U.S. accelerated sharply in September, according to a Federal Reserve Bank of Kansas City survey released Thursday. It was the latest in a series of reports pointing to an economy gathering momentum heading into the fourth quarter.
The Kansas City Fed’s composite index of manufacturing activity rose to 14 from 10 in August and 9 in July. Economists had expected the gauge to slip to 8. The reading was the strongest in more than a year and marked the fourth straight month of double-digit or near-double-digit gains. Readings above zero indicate expansion.
Demand drove the September gain. The survey’s new-orders index jumped to 24 from 16, and the order-backlog measure rose to 13 from 4. The production index climbed to 20, and shipments rose to 21. Every month-over-month component of the survey was at or above zero…