Report: Manufacturing hits high as hiring drops

First, the good news: U.S. manufacturing hit a two and a half year high in October, according to a report issued Friday by the Institute for Supply Management as reported by Reuters. The numbers show a jump in factory activity to 56.4 from 56.2 in September. A report above 50 means expansion.

This marks the fifth consecutive month of growth in the manufacturing sector, with the new-orders index nudging up from 60.5 to 60.6.

Now, the bad news: The manufacturing employment index in October dropped to 53.2 from 55.4 in September. Economists are pessimistic that the government’s jobs report due Nov. 8 will show hiring in the overall economy slowed even more in October.

Read more from Reuters.