The US national factory activity, a key indicator of the American manufacturing activity, rose to 51.5 in the month of September from 49.6 in August, according to the Institute for Supply Management (ISM).

The rise of the index to a level above 50 indicates that the sector is not in contraction mode anymore in September after falling for three previous months. The index has risen above the 50 mark for the first time since May this year, according to the data released by ISM.

The forward looking index also rose to the level of 52.3 during the month of September compared to 47.1 during the earlier month. The employment index also gained to 54.7 in September from 51.6 in August. The data also showed that the rate of growth in the sector remained slow and there was contraction in some segments.

The index for exports showed continued contraction but the rate of fall has slowed in the month. The index for exports improved to 48.5 in September compared to 47 in August, indicating that the segment is contracting but at a lesser rate than earlier. The index for production rose to 49.5 from 47.2 in August.