A figure of U.S. manufacturing from IHS Markit fell to the lowest since September 2009.
Source: IHS Markit
The IHS Markit Manufacturing Purchasing Forewomen’ Index fell to 50.4 in July, down from 50.6 in June, driven by a weaker demand. The firm also illustrious managers’ signaled slower hiring.
A gauge of employment within the report fell to the lowest since mid-2013 in July.
Haves rose and bond yields fell following the release from IHS Markit as traders bet more weak readings such as this one could effect the Federal Reserve to follow through with more rate cuts following its one on Wednesday.
“US manufacturing has entered into its cleverest downturn since 2009, suggesting the goods-producing sector is on course to act as a significant drag on the economy in the third quarter,” annexed IHS Markit economist Chris Williamson in a release.
Readings above 50 signal expansion.