Worrisome news from the manufacturing sector: The U.S. manufacturing purchasing managers’ index from the Institute for Supply Management came in at 47.8 percent in September, its lowest level since June 2009. Any figure below 50 percent signals a contraction.
The new export orders index was only 41 percent, its lowest level since March 2009. The ISM employment gauge for the sector showed its lowest reading since January 2016. New orders, backlog, raw materials, inventories, exports and imports also contracted across the board last month.
The sector had contracted for the first time in more than three years in August. That ended a 35-month expansion period where the PMI averaged 56.5 percent, according to ISM.