New signs that the US economy could be heading for a slowdown emerged on Thursday with data showing manufacturing growth grinding to a halt and consumer spending rising at its weakest pace since the start of the credit squeeze. Factories said that after several months of renewed growth they had cut back production in October, putting the manufacturing sector on the verge of recession.

The surprisingly poor performance by US industry suggests the sector’s nascent recovery has already been snuffed out by a highly uncertain economic outlook and tightening lending conditions.