WASHINGTON - HOPES for the fledgling US economic recovery got a boost on Monday from better-than-expected news on manufacturing, construction and contracts to buy homes.

The surprisingly strong readings provided some comfort that the US economy is packing more momentum than assumed going into the end of the year. Still, with jobs scarce, lending tight and consumers wary of spending, it's unclear whether the gains can be sustained as government stimulus programmes wind down.

The Institute for Supply Management's gauge of manufacturing activity grew in October at the fastest pace in more than three years. It was driven by businesses' replenishing of stockpiles, higher demand for American exports and support from the government's US$787 billion (S$1.1 trillion) stimulus programme.

The ISM index shot up to 55.7 in October, the third straight reading above 50, which signals growth in the sector. It was the highest level since April 2006.

Economists were also buoyed by a government report on Monday that construction spending rose a bigger-than-expected a 0.8 per cent in September, fueled by the strongest jump in home construction in six years. The gain in housing offset continued weakness in construction of office buildings, hotels and shopping centers.

In a third report, the National Association of Realtors said the volume of signed contracts to buy previously occupied homes rose 6.1 per cent in September to a reading of 110.1. That's the highest level since December 2006. And it's more than 21 per cent above a year ago. -- AP