“Demand remains moderately strong, with the New Orders Index easing to below 60 percent for the first time since April 2017, the Customers’ Inventories Index remaining low but improving, and the Backlog of Orders Index remaining steady,” said Fiore. “Consumption softened, with production and employment continuing to expand, but at lower levels compared to September.”

The unchanged figure in construction spending for September was reflected in a slide in spending on government projects. The trade wars have placed higher costs on land, labor and lumber, discouraging builders to undertake new projects.

U.S. President Donald Trump tweeted on Thursday that he “just had a long and very good conversation with President Xi Jinping of China,” signaling that trade negotiations with the second largest economy are moving forward positively. President Trump also mentioned that continued discussions will take place at the G-20 Summit.

For more trends in fixed income, visit the Rising Rates Channel.