The September ISM Index Drags the Market Down

by Marilou Moursund on October 1, 2019

in Economic Indicators,Uncategorized

The September ISM index came in at 47.8, the lowest reading since March of 2009.  A reading below 50 indicates that the economy is contracting.  From the linked WSJ article:

The global manufacturing slowdown worsened in September, and trade flows are set to grow this year at the weakest pace since the financial crisis as tariffs rise and the global economy cools. U.S. factory activity contracted for the second straight month, the Institute for Supply Management said Tuesday. Its U.S. manufacturing index fell to 47.8 in September from 49.1 in August. The reading is the lowest since June 2009 and represents a continuation of the slowdown seen in August, when the index contracted for the first time since August 2016. Surveys of purchasing managers in Europe and Asia released Tuesday pointed to deepening declines in factory activity in September, as a slowdown in exports hit factories. Slowing economic growth has prompted a wave of central bank stimulus measures around the world, including from the Federal Reserve and the European Central Bank. The latest effort came Tuesday, when the Reserve Bank of Australia cut its key interest rate for the third time this year.

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