US ISM index falls to lowest level in two years
US manufacturers grew in September at their slowest pace in over two years, figures released on Thursday showed.
The Institute for Supply Management revealed its manufacturing index declined from 51.1 to 50.2 in August, falling below the 50.6 reading analysts had expected.
The figure marked the lowest reading since May 2013, although it remained over the 50 threshold that indicates expansion.
Analysts attributed the decline to a stronger dollar and the weaker global economy, which hampered US exports of many American-made goods.
The sub-index monitoring new orders fell 1.6 points to 50.1, while the employment gauge edged 0.7 points lower to 50.1.
"The September ISM data is consistent with the regional surveys already reported that show a stagnant US manufacturing sector," analysts at Barclays said in a note.
Lower energy prices, a strong dollar, and weak international demand are likely to prevent a strong rebound for the sector in the near term.