The Institute for Supply Management released its Chicago purchasing managers' index on Monday. The Chicago purchasing managers' index dropped to 48.7 in November from 56.2 in October, missing expectations for a decrease to 54.0.

A reading above the 50 mark indicates expansion, a reading below 50 indicates contraction.

The drop was mainly driven by a fall in new orders. The new orders index was down to 44.1 in November from 59.4 in October. It was the lowest reading since March.

The production index fell to 50.9 in November from 63.4 in October, while the employment index rose to 51.6 from 50.6.

"The slowdown in the global economy, the strong dollar and decline in oil prices have all impacted businesses this year to varying degrees. While it looks likely that the Fed will begin to raise rates in December, the latest setback supports the case for a gradualist approach to monetary tightening," Chief Economist of MNI Indicators Philip Uglow said.