America’s manufacturing sector remained entrenched in recession in September, with the latest data from both the Institute for Supply Management (ISM) and S&P Global revealing a steeper decline in factory employment, casting a shadow over the already weakening labor market.
Employment cuts accelerated in the manufacturing sector last month, with the ISM’s Employment Index dropping two points, to 43.9 percent, as companies surveyed by ISM indicating that they were looking to “right-size” workforces to align with weaker demand, according to data released on Oct. 1.
The ISM’s manufacturing gauge remained unchanged at 47.2 percent last month, consistent with August, reflecting the sector’s prolonged contraction, because readings below 50 indicate recession. This marks the sixth consecutive month of decline in factory activity, and the twenty-second in the last 23 months, as the sector grapples with weaker demand, shrinking backlogs, and falling new orders….