The Shropshire side had enjoyed a positive start to the campaign after winning four of their opening five league games, but they suffered their first setback at the hands of Congleton Town at the weekend.
Goals either side of half-time from Carl Dickinson meant the visitors took a 2-0 lead into the closing stages of the game.
Shifnal did get one back in the 88th minute when Joe Cuff netted, but it was too little too late.
Whitchurch Alport’s steady start to the season continued with a draw at home to Bewdley Town.
Alex Hughes’ penalty in the 32nd minute gave them the lead before it was cancelled out by Fahme Ibrahim’s hopeful shot from distance.
The result leaves them just below mid-table with 11 points from their opening eight games.
In Division One, Allscott Heath maintained their excellent start with a 2-0 win against Coventry Copsewood.
Goals from Aiden Jehu and Harry Morris gave them the points. They are second in the league, four points behind Hinckley AFC.
Shawbury United’s difficult start to the campaign got worse as they were beaten by Cradley Town on their travels.
A goal from Lucas Edmonds and a brace from substitute Thomas Cole gave the home side the points.
It leaves Shawbury United sitting second from bottom having taken eight points from their opening 11 games.
AFC Bridgnorth have also had a difficult start to the season and they failed to turn up at all against the league leaders Hinckley on Friday night as they conceded 10 goals in an absolute thrashing.
Hinckley’s Brady Curtis Middleton bagged a hat-trick, Jack Edwards bagged a first-half brace, while Sam Walton scored twice in the second half.
Matthew Dawson, Declan Somel and Daniel Fraser were also on the scoresheet for the hosts on a miserable night for Bridgnorth which finished 10-1.
They sit two places above their Shropshire rivals Shawbury leading them by a point but with a game in hand.
In North West Counties League First Division South, Market Drayton Town are second in the table after losing 2-1 to Abbey Hey.
Ivanilson Da Silva gave the home side the lead in the 28th minute before they added a second six minutes later through Jake Parker.
Drayton pulled one back before the break when Nicky Parker netted but they were unable to find an equaliser.
They have 24 points from 13 games and trail leaders Brocton by just a point, but they have played three games more than the Badgers.