New orders received by US factories tumbled for a second straight month in September, underscoring the grim economy awaiting the winner of Tuesday’s presidential election.

Overall factory orders dropped 2.5 per cent to a seasonally adjusted $432bn, according to a Commerce Department report. Economists were expecting a more modest 0.8 per cent decline and the sharp drop in orders follows a 4.3 percent plunge in August orders, which was originally reported as a 4 per cent decline.