The numbers: American manufacturers say business has gotten stronger toward the end of 2018 despite higher costs from tariffs and a shortage of skilled labor and truckers to carry their goods.

The Institute for Supply Management said its manufacturing index snapped back in November to 59.3% from a five-month low of 57.7% in October.

The latest reading, derived from a survey of executives, easily exceeded the MarketWatch forecast of 58%.

Readings over 50% indicate more companies are expanding instead of shrinking. Any number over 55% is viewed as exceptional.

Also read: Businesses in Chicago region grow at fastest pace in 4 1/2 years

What happened: Customer orders surged in November and production rose as well, prompting companies to hire more workers or ask current employees to work more overtime.

Despite U.S. tariffs on foreign steel and aluminum, prices for those key materials have declined, executives said.

Companies said they still had trouble finding skilled workers and enough transportation to carry their goods, but the “difficulties are at more manageable levels,” ISM found.

“Prices pressure continues, but at notably lower levels than in prior periods,” said Timothy R. Fiore, chairman of the ISM survey committee.

Thirteen of the 18 U.S. manufacturing industries surveyed by ISM expanded in November. Three of the remaining five — printing, mineral production and primary metals — reported contraction.

What they are saying? “Business remains strong. Tariffs impact is fully reflected in third-quarter results, and initiatives are under way to move work out of China into other low-cost countries,” said an executive at one manufacturing.

An executive at a maker of furniture and related products said, “Business steady. Many customers [are moving] orders up due to price increases.”

Big picture: Most American companies including manufacturers are still growing rapidly despite U.S. tariffs and ongoing trade tensions with China, one of the nation’s largest trading partners. A temporary truce by the U.S. and China to delay additional tariffs is likely keep the wind at the back of manufacturers for a few more months.

Market reaction: The Dow Jones Industrial Average DJIA, -1.34% and S&P 500 SPX, -1.65% soared on Monday after the Trump administration agreed to a three-month truce of sorts in a trade spat with China that has alarmed investors and businesses.

Investors began to turn more bullish last week after the Federal Reserve chairman seemed to suggest U.S. interest rates won’t rise much further.

Read:Dovish Powell says interest rates almost where they need to be