Investing.com - Manufacturing activity in the U.S. expanded at the slowest rate in three months in September, dampening optimism over the health of the economy, industry data showed on Wednesday.
In a report, the Institute for Supply Management said its index of purchasing managers fell to 56.6 last month from a reading of 59.0 in August. Analysts had expected the manufacturing PMI to decline to 58.5 in September.
The New Orders Index registered 60, a decrease of 6.7 points from the 66.7 reading in August, indicating growth in new orders for the 16th consecutive month.
The Employment Index grew for the 15th consecutive month, registering 54.6, a decrease of 3.5 points below the August reading of 58.1.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
EUR/USD was trading at 1.2635 from around 1.2615 ahead of the release of the data, while GBP/USD was at 1.6244 from 1.6225 earlier.
Meanwhile, U.S. equity markets extended losses. The Dow 30 fell 0.85%, the S&P 500 declined 0.85%, while the NASDAQ 100 tumbled 1.2%.
Elsewhere, in the commodities market, gold traded at $1,218.30 a troy ounce, compared to $1,216.30 ahead of the data, while crude oil traded at $92.17 a barrel from $92.16 earlier.