In a sign the factory sector's weakness could continue into June, the New York Federal Reserve Bank's Empire State index fell to 2.3, a 15-point drop from the previous month and the lowest level since November 2011.
Economists say part of that reflects a slowdown in production at American factories, stemming from weakness overseas that has dampened demand for exports.
"The weakness of factory output, combined with the subdued service sector growth signalled by the flash PMI, suggests the eurozone economy grew by just 0.1% in the fourth quarter".
"Go to companies who are unknown for design, visit the factory, see what the weaknesses are.
Weakness in the factory sector was seen in almost all regions, the central bank said.
Many other economic indicators, such as retail sales and factory orders, are also showing weakness.
THREE decades ago a Conservative government led by Margaret Thatcher removed many of the props that had supported manufacturing, revealing its weakness and causing factories to collapse.
There were further signs of weakness for British factories on Monday, with a survey appearing to confirm 2015 was slower than 2014.
The sell-off rippled out from China, where news of weakness in the vast factory sector and a faltering yuan sent Chinese shares on the CSI300 index tumbling 7%, forcing trading to be halted.
