US manufacturing activity shrank in September for the first time in eight months, a closely-watched industry survey showed yesterday as a hesitant recovery in the euro zone went into reverse.
"Stagnant and sluggish are apt descriptions for manufacturing at this time," said Mr Norbert Ore, chairman of the Institute for Supply Management (ISM)'s survey of manufacturers.
The ISM purchasing managers' index - based on a survey of supply executives - fell to 49.5 points in September from 50.5 the previous month. Any figure below 50 points indicates a contraction.
However, the fall was less than expected, giving a boost to markets.
In the euro zone, gloom about global recovery prospects depressed new orders and firms cut output and job cuts. The Reuters Euro-zone Purchasing Managers' Index fell through the critical 50 line to 48.9 in September from 50.8 in August as German manufacturing slipped deeper into contraction and recovery halted in France and Italy.
Falling orders and output and faster job cuts pushed the index down to its lowest level since February.
