A measure of USA manufacturing unexpectedly fell deeper into contraction, posting the weakest reading since the end of the last recession as a global slowdown and the U.S.
Some companies restarted their Brexit preparations ahead of a potential no-deal exit on October 31, but this was not enough to offset declines elsewhere as the US-China trade wars hit and the global slowdown in trade continued.
The Institute of Supply Management's closely watched index showed a decline in manufacturing for the second month in a row. The figure missed all estimates in a Bloomberg survey that had called for an increase from August's 49.1.
"The key positive from the latest Turkey PMI survey was a return to growth of new orders, in turn helping support job creation and a stabilization of output", said Andrew Harker, IHS Markit's associate director. A score above 50 indicates expansion in the sector. Slowing global growth has damped demand for manufactured goods at home and overseas while trade policy uncertainty has disturbed supply chains and put hiring plans on hold.
There were reductions in new orders, with the investment goods sector the weakest performer - falling in output and new business. Instead, the index fell further into contraction territory.
ISM's trade gauges showed American producers are struggling with headwinds from overseas as well as the effects of a resurgent dollar. The measure of export orders, a proxy for overseas demand, fell to 41, the lowest level since March 2009, while the imports index remained in contraction.
President Donald Trump blames the Federal Reserve - in particular Chair Jerome Powell - for the sector's malaise.
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SALES and exports of manufactured products dropped last month, a survey of Australian companies suggests, but the industry hired more workers and their wages increased.
Economic data released on Monday helped to allay fears that the economy could enter a technical recession in the third quarter after contracting by 0.1% in the second quarter.
Myanmar led the pack in August, with a PMI of 52 during the month, unchanged from the previous month.
"September PMI data indicated a marginally faster rate of improvement in the health of USA manufacturing, though the overall picture remained one of a stuggling goods producing sector that has suffered its worst quarter since 2009", the IHS Markit noted in its publication.
Compounding the dismal data on Tuesday, the World Trade Organization (WTO) slashed its forecast for global trade growth by more than half.
"Nevertheless, challenges remained apparent as clients held out for price discounts amid strong competitive pressures".
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