U.S. manufacturing activity fell more than expected last month—reaching the lowest level since the aftermath of the September 11, 2001 attacks—as new orders to factories slowed sharply. The Institute for Supply Management (ISM) reported Wednesday that its manufacturing index fell in September to 43.5, the lowest level since October 2001. The reading dropped from 49.9 in August, the biggest one-month decline since early 1984. A reading above 50 signals growth in the manufacturing sector, while a figure below 50 reflects contraction. The ISM survey of purchasing managers found that new orders fell to 38.8 last month from a reading of 48.3 in August. Employment, deliveries, inventories, and manufacturers' order backlogs also fell. Industries reporting contraction included clothing, furniture, machinery, transportation equipment, and electrical appliances.
