The US manufacturing sector contracted in December at the fastest pace in more than a decade, with new purchase orders falling to the lowest level in about 11 years and factory employment falling for the fifth month in a row.
The Institute for Supply Management said on Friday that its index of factory activity in the country fell to 47.2 last month from 48.1 in November. This is the lowest reading since June 2009.
Economists included in a Reuters poll had expected the index to rise to 49.0.
The manufacturing sector was under pressure for most of the second half of 2019 due to rounds of mutual tariffs between Washington and Beijing, which slowed the flow of goods between the two largest economies in the world.
Key sub-indices of activity hit multi-year lows last month. The employment index fell to 45.1 in December from 46.6 in November, recording the lowest reading since January 2016, while new purchase orders fell to 46.8, the lowest level since April 2009.