Chicago-area business activity unexpectedly returned to contraction in the month of September, according to a report released by MNI Indicators on Monday.

MNI Indicators said its Chicago business barometer slumped to 47.1 in September after rebounding to 50.4 in August. A reading below 50 indicates a contraction in Chicago-area business activity. The index indicated a contraction for the third time in four months, while economists had expected a much more modest decrease to a reading of 50.2.

The production index led the way lower, plunging by 7.6 points to 40.4 in September, hitting its lowest level since May of 2009. The new orders index also tumbled by 7.6 points or 48.5. While the employment index improved slightly to 45.6 in September, the quarterly average fell to 44.1, recording the weakest quarter since the fourth quarter of 2009. MNI Indicators said its reading on prices at the factory gate rose 4.1 points to 57.7 in third quarter, with anecdotal evidence pointing to tariffs affecting prices and business activity.

Turkey Trade Deficit Widens In August

Turkey trade deficit widened in August, amid a rise in both exports and imports, data from the Turkish Statistical Institute showed on Monday. The trade deficit rose to $2.50 billion in August from $2.47 billion in the same month last year. Exports rose 1.6 percent annually in August and imports grew 1.5 percent. On a seasonally and calendar adjusted basis, exports declined by 1.5 percent in August, while imports rose 0.4 percent from the previous month. Calendar adjusted exports and imports decreased by 0.8 percent and 0.2 percent, respectively, from a year ago.

Hungary Producer Price Inflation At 3-Month High; Gross Earnings Rise

Hungary's producer price inflation rose to the highest level in three months in August, figures from the Hungarian Central Statistical Office showed on Monday. The producer price index rose 0.9 percent year-on-year in August, following a 0.3 percent increase in July. The latest inflation was the highest since May, when prices rose 2.7 percent. Prices changes were influenced by changes in base material and world market prices and by wage growth, the agency said.

Domestic market producer prices grew 2.4 percent in August and foreign market prices rose 0.2 percent. Separate data from the statistical office showed that the gross wages grew 10.7 percent year-on-year in July. For the January to July period, gross wages and net earnings increased by 10.6 percent each.