US factory activity hit a two-year low in August as manufacturers struggled with a strong dollar, weak global demand and the lingering effects of deep spending cuts in the energy sector.
Other data, however, suggested the economy appeared to be on solid footing, with construction spending rising in July to its highest level since 2008.
The Institute for Supply Management said its national factory activity index fell to 51.1 last month, the lowest reading since May 2013, from 52.7 in July.
A reading above 50 indicates expansion in the manufacturing sector.
The decline in the index also likely reflected the recent global equities sell-off, which was triggered by concerns over China's slowing economy.
Manufacturing, which accounts for 12% of the US economy, has been under pressure from the strength of the dollar, which has gained 16.8% against the currencies of the United States' main trading partners since June 2014.
A more than 60% plunge in crude oil prices since June last year has led to deep spending cuts in the energy sector.
The US dollar fell against a basket of currencies after the data, while US stocks were trading sharply lower.
Apart from manufacturing, the economy is thriving.
In a separate report, the Commerce Department said construction spending increased 0.7% to $1.08 trillion, the highest level since May 2008, after a similar gain in June.
Employment in the UK manufacturing sector fell for the first time in more than two years last month as the sector was held back by sustained export weakness - with China's slowdown likely to add a further headache.
The CIPS/Markit purchasing managers' index survey posted a reading of 51.5 in August - where 50 separates growth from contraction.
This was down from 51.9 in July.
A reading for employment growth turned negative for the first time in 26 months as larger manufacturers made cutbacks, though small businesses continued to add staff.
Exports fell for the fifth month in a row, blamed on the strength of the pound, weak sales in the euro zone and the slowdown in China.
Domestic business kept the sector going, with consumer goods remaining a source of strength - though there was ongoing weakness in those sorts of goods used by firms to make other products.
Today's figures come after latest official data last week showed trade was the biggest positive contribution to UK gross domestic product (GDP) in the second quarter.
