On Tuesday, the 1st of October 2019, data from the US Institute for Supply Management (ISM) had reported a shocking nosedive of US manufacturing activity to a 10-year low figure in September, as a protracted trade spat with Beijing had been weighing on exports.
On top of that, release of another bleak US economic data on Tuesday (October 1st) had sent a serious shockwave throughout the global financial markets, as investors’ frets of a sharp downturn in global economy appeared to be nearing.
Besides, according to Tuesday’s (October 1st) ISM data, benchmark index of US national factory activity tumbled by 1.3 points to 47.8 on September, remarking the index’s lowest reading since June 2009. Aside from that, Tuesday’s (October 1st) ISM data also confirmed that the world’s largest economy’s factory activity had just joined other big-league economies which were facing off steep downward spiral in their industry activity amid growing acrimony between United States and China.
More critically, Tuesday’s (October 1st) ISM data also revealed that the US manufacturing sector, accounted for 11 per cent of entire US economy, had been down to a recession along with China, Germany, Japan and a number of heavyweight economies all over the world.
Meanwhile, shortly after release of US ISM data for September, accusing the Federal Reserve over United States’ worst downturn on manufacturing activity in a decade, US President Donald Trump tweeted, “As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected.
Fed Rate too high. They are their own worst enemies; they don’t have a clue. Pathetic! ”