A gauge of U.S. manufacturing from the Institute for Supply Management (ISM) reached its lowest level in more than 10 years in September, CNBC reports.
The ISM U.S. manufacturing Purchasing Managers’ Index plunged 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 with any figure below 50% signalling a contraction.
The report fanned fears of a recession and hit the stock market. The Dow Jones Industrial Average lost more than 100 points, erasing earlier gains on Tuesday.
The ISM employment gauge for the sector dropped to the lowest since January 2016, primarily driven by a lack of demand.
The manufacturing sector contracted for the first time in more than three years in August, ending a 35-month expansion period where the PMI averaged 56.5%, according to ISM.