The pace of growth in the manufacturing sector slowed more than expected in July, according to an industry report released on Monday.

The Institute for Supply Management (ISM) said its index of national factory activity fell to 50.9 from 55.3 the month before. The reading was shy of expectations of 54.9, according to a Reuters poll of economists.

A reading below 50 indicates contraction in the manufacturing sector, while a number above 50 means expansion.

New orders fell to 49.2 from 51.6. Prices paid was down at 59 from 68. The employment index fell to 53.5 from 59.9. (Reporting by Edward Krudy, Editing by Chizu Nomiyama)