By Courtney Schlisserman Sept. 30 (Bloomberg) -- A measure of U.S. business activity unexpectedly shrank in September, indicating companies are likely to limit spending and production. The Institute for Supply Management-Chicago Inc. said today its business barometer decreased to 46.1 from 50 in August. Readings below 50 signal contraction. Near-record excess capacity and gains in spending induced almost solely by government stimulus programs are likely to prevent companies from ramping up assembly lines. The manufacturing recovery may be uneven as federal assistance begins to wind down. “Manufacturing is clearly pulling out of recession but we should expect the gains to slow in coming months,” Zach Pandl, an economist at Nomura Securities International Inc. in New York, said before the report. “With final domestic demand weak, demand for capital equipment remains low and businesses remain cautious.” Economists forecast the gauge would rise to 52, according to the median of 61 projections in a Bloomberg News survey. Estimates ranged from 49.5 to 55. Other reports today showed the economy contracted less than anticipated in the second quarter and companies cut payrolls in September.

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