The recession in US manufacturing worsened last month as plunging global demand and trade frictions drove activity to its lowest point since the Great Recession, according to an industry survey released Tuesday.

The unexpected drop in the

Institute for Supply Management’s closely-watched index was another worrying sign for the US economy, amid President Donald Trump’s trade war with China, slowing consumer spending and weaker sales of major factory-made goods.

The bad news knocked the wind out of Wall Street’s sails, with the Dow Jones Industrial Average closing down 1.3 per cent.

Trump blamed the Federal Reserve, rather than his own trade wars, accusing the central bank and Fed Chair Jerome Powell of hurting factory output by allowing the US dollar to strengthen, by failing to cut interest rates aggressively, which puts American exports at a disadvantage.

“As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected,” Trump said on Twitter in yet another attack on the independent institution.

“They are their own worst enemies, they don’t have a clue. Pathetic!”

ISM’s manufacturing index fell 1.3 points to 47.8 per cent in September, the lowest point since June 2009 and showing continued contraction. Any reading above 50 indicates growth.