Warning signs keep piling up that the American economy is slowing down, if not headed for an outright recession.
CNBC reports that IHS Markit's U.S. manufacturing purchasing managers index this month contracted for the first time since September 2009.
"New orders received by manufacturers dropped the most in 10 years, while the data also showed export sales tanked to the lowest level since August 2009," CNBC reports.
A major reason for the drop in manufacturing orders has been President Donald Trump's trade war with China, which has raised the prices of raw materials such as steel and aluminum that are used for manufacturing goods.
Additionally, IHS Markit economics associate director Tim Moore says that this manufacturing slump is impacting the service economy as well.
“The most concerning aspect of the latest data is a slowdown in new business growth to its weakest in a decade, driven by a sharp loss of momentum across the service sector,” Moore explains. “Survey respondents commented on a headwind from subdued corporate spending as softer growth expectations at home and internationally encouraged tighter budget setting.”
The U.S. Treasury bond yield curve also inverted once again on Thursday, which means that interest rates for 10-year treasury bonds were lower than interest rates for 2-year bonds. In the past, an inverted yield curve has been a key sign of a coming economic recession.