U.S. manufacturing activity grew at its slowest pace in nearly 2-1/2 years in September as new orders contracted amid aggressive interest rate increases from the Federal Reserve to cool demand and tame inflation. The Institute for Supply Management (ISM) showed a measure of factory employment contracted last month for the fourth time this year. Companies are now managing head counts through hiring freezes and attrition to lower levels, with medium- and long-term demand more uncertain.
U.S. construction spending fell by the most in 1-1/2 years in August, pulled down by a sharp decline in outlays on single-family homebuilding amid surging mortgage rates. The Commerce Department said that construction spending dropped 0.7% in August, the largest decline since February 2021, after decreasing 0.6% in July.
Shares of Tesla traded lower after the world's most valuable automaker sold fewer-than-expected vehicles in the third quarter as deliveries lagged way behind production due to logistic hurdles. Shares opened at a more than two-month low which means Tesla has lost nearly $58 billion in market capitalization in a single day, more than the market value of General Motors Co as well as Ford Motor Co.