- The ISM U.S. manufacturing purchasing managers’ index came in at 47.8% in September, the lowest since June 2009.
- This marks the second consecutive month of contraction.
- The new export orders index tanked to only 41%, the lowest level since March 2009.
A gauge of U.S. manufacturing showed the lowest reading in more than 10 years for September as exports dived amid the escalated trade war.
The U.S. manufacturing purchasing managers’ index from the Institute for Supply Management came in at 47.8% for September, the lowest since June 2009, marking the second consecutive month of contraction. Any figure below 50% signals a contraction.
The new export orders index was only 41%, the lowest level since March 2009, down from the August reading of 43.3%, ISM data showed.
“We have now tariffed our way into a manufacturing recession in the U.S. and globally,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.
Manufacturing activity growth has been slowly declining for a while now amidst the trade war, and this marks the second consecutive month of contraction for the reading, in line with longer term trends. This is unlikely to be an outlier - our manufacturing sector is shrinking.
October ISM activity edit:
October's ISM figure was released today. Manufacturing output contracted further this month (marking the third consecutive month of contraction).