The Midwest's manufacturing industry has seen significant gains in recent times, and last week the Institute for Supply Management (ISM) showed just how notable that growth has been. The October Chicago Business Barometer, which quantifies the sector's evolution on a scale of 0 to 100, reached 66.2 points, its highest level in 12 months. That's an increase of 5.7 points over September, and well above the analysts' expectation of just 60.

The main driver last month were new orders, which increased to 73.6 points. This is especially significant for American manufacturing as a whole because recent data shows regression in both China and Europe. Other areas of growth included production, employment and inventories.

"The strengthening in the Chicago Business Barometer suggests that the U.S. economic recovery is more entrenched," said Market News International chief economist Philip Uglow. "The October survey also provided clearer evidence that companies are taking on more workers to keep up with higher demand. Concerns about the global economy and the continued low level of inflationary pressures may persuade the Fed to keep rates lower for longer, but the domestic economy is growing healthily."

Inflationary pressures have been eased because the price of crude oil is down worldwide. This has had the noticeable effect of lowering gas prices for consumers, and has also reduced the prices paid component of the Barometer.

Manufacturing ERP software can help Midwestern companies contribute to the industry's continued good health. This software automates and streamlines a manufacturer's business processes, from planning and inventory to sales and distribution, leading to simplified operations and improved results.