The report from the New York Federal Reserve showed on Monday that manufacturing activity in the New York region worsened modestly in September.

According to the survey, NY Fed Empire State manufacturing index came in at 2.0 this month compared to an unrevised 4.8 in August, pointing to two months of modest growth after a brief decline in activity in June.

Economists had expected the index to drop to 4.0.

Anything below zero signals contraction.

According to the report, the new orders index declined three points to 3.5, pointing to a small increase in orders, while the shipments index declined four points to 5.8, its lowest level in nearly three years. Meanwhile, unfilled orders remained negative for a fourth consecutive month, and inventories increased for a second straight month. The index for number of employees rose to 9.7, pointing to an advance in employment levels after three months of declines. On the price front, the prices paid index grew six points to 29.4, and the prices received index surged five points to 9.2.