The ISM U.S. manufacturing Purchasing Managers’ Index fell to 47.8% in September, the lowest since June 2009, marking the second consecutive month of contraction. The reading is down from 49.1% in August. Any figure below 50% signals a contraction.
“Global trade remains the most significant issue, as demonstrated by the contraction in new export orders that began in July 2019. Overall, sentiment this month remains cautious regarding near-term growth,” Timothy Fiore, ISM chair, said in a statement.
Consumption, measured by the production and employment indexes, contracted at faster rates, primarily driven by a lack of demand, ISM data showed. New orders, backlog, raw materials inventories exports and imports also contracted across the board last month, according to ISM.
The August contraction ended a 35-month expansion period where the PMI averaged 56.5%, according to ISM.
