Manufacturers cited the US and China trade wars that weigh on demand and make materials more expensive, according to ISM.
"The disappointing data only gives long-standing fears of slowing global growth," said Alec Young, CEO of Global Market Research at FTSE Russell.
Stocks did not like the data a bit and mated previous gains.
Due to the weakness of the data, the Federal Reserve could become more rude at its next meetings.  "We believe the Fed will provide additional & # 39; insurance & # 39; interest rates to try to curb the decline in overall growth," wrote James Knightley, chief international economist at ING.
Market expectations for a quarterly percentage point interest rate cut last month rose to 65%, compared to less than 40% on Monday.
Gold prices, which had fallen to almost two months earlier, spiked higher on production data.
Gold futures rose 1.4% to $ 1,485.50 ounces.