A report from the Institute for Supply Management (ISM) showed on Monday the U.S. manufacturing sector’s activity unexpectedly contracted in November.

The ISM's index of manufacturing activity came in at 48.1 percent last month, down 0.2 percentage point from the October reading of 48.3 percent, and missed economists' forecast for a 49.2 percent reading.

A reading above 50 percent indicates expansion, while a reading below 50 percent indicates contraction.

According to the report, the New Orders Index stood at 47.2 percent, recording a decrease of 1.9 percentage points from the October reading, while the Backlog of Orders Index registered 43 percent, down 1.1 percentage points compared to the October reading, the Employment Index was at 46.6 percent, a 1.1-percentage point from the October reading, and the Inventories Index came in at 45.5 percent, a decline of 3.4 percentage points from the October reading. At the same time, the Production Index registered 49.1 percent, up 2.9 percentage points compared to the October reading, the Supplier Deliveries Index came in at 52 percent, a 2.5-percentage point advance from the October reading and the Prices Index was at 46.7 percent, a 1.2-percentage point gain from the October reading of 45.5 percent.

Timothy R. Fiore, Chair of the ISM Manufacturing Business Survey Committee said, “The past relationship between the PMI and the overall economy indicates that the PMI for November (48.1 percent) corresponds to a 1.5-percent increase in real gross domestic product (GDP) on an annualized basis."