US manufacturing at its worst level in a decade: survey

US manufacturing has taken a nose dive to its worst level in over a decade, a key gauge of those numbers reveals.

The Institute for Supply Management’s U.S. Purchasing Managers’ Index dipped to a reading of 47.8% in September. This is the second straight month of losses, and the lowest reading since June 2009. Any number below 50% signals a contraction.

The Dow dropped 200 points Tuesday in response to the reading, erasing solid gains earlier in the morning and turning negative. The index has stoked fears over a trade war with China and the looming possibility of a recession on the first trading day in the fourth quarter.

Manufacturing contracted for the first time in August to a reading of 43.3% following 35 months of expansion where the PMI averaged 56.5%.

In a tweet, President Trump blamed high interest rates and the strength of the dollar for the sector’s weakness.