Manufacturing index down sharply in month

TEMPE, Ariz., Oct. 2 (UPI) -- U.S. manufacturing activity in September tumbled to its lowest level since October 2001, the Institute for Supply Management said Thursday

The Purchasing Managers Index for August was 43.5, well below the break-even point of 50, marking a second consecutive month of declines. The rate of decline also accelerated.

"The PMI indicates a significantly faster rate of decline in manufacturing during September, marking a departure from the 2008 trend toward negligible growth or contraction each month," said Norbert Ore, chairman of the Institute for Supply Management Manufacturing Business Survey Committee.

The index uses a break-even point of 50, with figures more than 50 indicating growth and figures less than 50 indicating contraction.

In September, the employment index hit 41.8, contracting for the second straight month. The production index dropped from 52.1 in August to 40.8, while the prices index held to a streak of 21 consecutive monthly increases.

The price index, however, dropped from 77 to 53.5 in September, indicating a slower rate of price increases in the month.

The export index fell from 57 in August to 52, while the import index also declined, falling from 48.5 to 44.