MNI Indicators’ report revealed on Monday that business activity in Chicago contracted this month.

The MNI Chicago Business Barometer, also known as Chicago purchasing manager's index (PMI) came in at 47.1 in September, down from an unrevised 50.4 in August. Economists had forecast the index to decrease to 49.9.

A reading above 50 indicates improving conditions, while a reading below this level shows worsening of the situation.

According to the report, only two of the five components of the headline indicator saw a monthly advance: the Supplier Deliveries rose to 54.8 and the Employment grew to 45.6. At the same time, the Production saw the largest drop, tumbling by 7.6 points, to 40.4, the lowest since May 2009. The Order Backlogs decreased to 46.8 and the Inventories slipped to 41.7, its forty-month low. On the price front, prices at the factory gate saw a modest monthly drop.