Manufacturing activity in the United States fell to a 10-year low in September as economists continue to warn about signs of a recession.
The Institute for Supply Management released a report on Tuesday showing that its manufacturing activity index fell 1.3 points to a score of 47.8 in September. The index is at its lowest since June 2009 near the end of the Great Recession.
The U.S. economy is beginning to show signs of strain under a prolonged trade war with China, according to Reuters. Republicans’ tax cut bill boosted the business across the U.S., but benefits from the legislation are slowing as businesses lose confidence in the state of trade with China.
“This is serious,” Deutsche Bank Securities head economist Torsten Sløk said. “There is no end in sight to this slowdown, the recession risk is real.”
Economists are warning of a recession as President Trump’s trade war with China stretches into its 15th month.
