The job losses in manufacturing broadened in September, reaching a scale at which they could start to weigh more heavily on so far relatively resilient consumer morale, Smith said.
ISM Manufacturing Business Survey Committee Chair Tim Fiore said in an interview that while the PMI and new orders again showed contraction in September, the most telling September metric is the decline in new export orders, which came at its highest rate of declines.
IHS Markit Economist David Owen noted that "a$3 key factor was falling export sales, which declined at the quickest rate recorded in the series history so far".
"Manufacturing is a small part of the economy, but it is a vitally important one, producing income and multiplier effects, especially in the Midwest".
US stock index futures were trading higher on Wednesday morning.
Demand for Russian manufactured products was weak among both domestic and foreign clients amid a global slowdown in manufacturing, ongoing uncertainty over the the U.S. What's the strategy now?
"People have been anticipating a bear market for years and they are very anxious and so any number like the ADP number is amplified in the volatility on the downside", said Tom Plumb, chief investment officer at Plumb Funds in Madison, Wisconsin.
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. New exports orders plunged to 41, according to the index.
After an early move to the downside, treasuries showed a significant rebound over the course of morning trading on Tuesday. Earlier in the session, the loonie hit its weakest intraday level since September 23 at 1.3290, after data showed that the domestic economy had stalled in July.
The strike at General Motors also likely contributed to the worsening manufacturing picture in September, when 46,000 workers stopped working, forcing the major automaker to halt production at its facilities.
"This survey is a not consistent with recession across the whole economy", he said in an analysis. Consumer spending, which powers most of the US economy, did not pull back much then and remains healthy so far.
- Don’t expect to see LeBron James much this preseason
- Trump suggested shooting migrants in the legs
- House of Representatives demands Giuliani's documents on Ukraine
- Kyrie Irving suffers a face injury in pickup game with Brooklyn Nets
- Liverpool must be vigilant, Man City getting greedy in scoring goals
- Peloton pedals its way to the high end of its IPO price
- California just signed a law that allows college athletes to get paid
- Eastern Equine Encephalitis spreads to Genesee County
- Historic Winter Storm to Impact the Northern Rockies & Northwest
- Bishopbriggs woman is set to strut catwalk for cancer care