The institute index that measures the manufacturing industry grew to 55.7 for October after being at 52.6 in September. A measurement above 50 on the index indicates growth in the sector.
Norbert Ore, chairman for the ISM, said that the manufacturing sector grew for the third straight month and that the industry's growth rate is the highest it's been since April of 2006.
"The jump in the index was driven by production and employment, with both registering significant gains," Ore said. "Production appears to be benefiting from the continuing strength in new orders, while the improvement in employment is due to some callbacks and opportunities for temporary workers."
For example, farm equipment producer Deere & Co. recently called back 452 workers at its manufacturing plant in Ottumwa, Iowa. The recalled workers are going to help produce 2010 models of farm equipment, including balers and products used by the hay and livestock industries. After the worker recall, 78 people associated with the plant still remain unemployed.
