American manufacturing activity is slowing as rising tariffs have made materials more expensive. The sector shrunk for the first time since September 2009, according to IHS Markit.
Markit's flash manufacturing purchasing managers' index for August fell just below 50, indicating a contraction. It was a 119-month low for the index.
The "most concerning aspect" of the latest data is a slowdown in new business growth, which fell to its weakest level in a decade, said IHS Markit economic associate director Tim Moore. Growth has slumped because of a sharp loss in momentum across the service sector.
Read the full story, "America's manufacturing sector shrank for the first time in nearly a decade," on cnn.com.