In Latest Sign of Recession, US Manufacturing Growth Plummets to Two-Year Low

U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years in September as new orders contracted amid aggressive interest rate increases from the Federal Reserve to cool demand and tame inflation.

The Institute for Supply Management (ISM) survey on Monday also showed a measure of factory employment contracted last month for the fourth time this year. ISM Manufacturing Business Survey Committee chair Timothy Fiore said "companies are now managing head counts through hiring freezes and attrition to lower levels, with medium- and long-term demand more uncertain."

Fiore, however,...