"Slowing demand leads companies to delay investment and cut costs to protect their profits," Wimmer stated. "But these measures create a cycle that further weakens demand, leading to recessionary conditions that could keep the industry from rebounding as quickly as it did in the wake of the Great Recession."
US industrial production has been in decline for three months in a row, as weak conditions in many of the key end markets were deteriorating, according to Moody’s.
"As oil & gas, metals & mining, and agricultural companies continue to soften in response to commodities volatility and slowing demand from China, the adverse effects will flow through to North American manufacturers with exposure to these sectors," the release said.
The International Monetary Fund said on Thursday that China has embarked on "historic rebalancing" of economic growth model, which has been "bumpy." The IMF has also previously stated that the impact of China’s slowing economy on the global market has exceeded the expectations of economists.