ISM Manufacturing Index Contracts in September

U.S. manufacturing contracted in September at the fastest pace since the last recession, the Institute for Supply Management said Wednesday.

ISM’s monthly factory services index dropped to a reading of 43.5, from a 49.9 reading in August, the group said. Figures of more than 50 indicate expansion; below that shows contraction.

Economists had forecast a drop to 49.5, Bloomberg reported. The index had hit a record low of 44.6 in January.

Other data released Wednesday show that the U.S. cut an estimated 8,000 jobs in September, Bloomberg reported.

The factory index measures manufacturing components of the economy.