U.S. Factory Gauge Jumps to 14-Year High as Orders Pick Up

A gauge of U.S. manufacturing unexpectedly jumped to the highest since May 2004 as orders, production and employment all picked up, even as companies contend with potential complications from trade tariffs, according to a report Tuesday.

The report shows factory demand is strengthening in the third quarter and adds to signals that the nearly decade-old expansion will hold up well in the second half of 2018. The rise in the employment gauge also suggests manufacturers may record another month of solid payroll gains in Labor Department figures due Friday.