U.S. Manufacturing Expands at Slower Pace

The U.S. economy's manufacturing sector expanded in April but at a slower pace than the previous month, according to an industry report released on Monday.

The Institute for Supply Management (ISM) said its index of national factory activity fell to 50.8 from 51.8 the month before. The reading was below expectations of 51.4 from a Reuters poll of economists.

A reading above 50 indicates expansion in the manufacturing sector and a reading below 50 indicates contraction.

The employment index rose to 49.2 from 48.1 a month earlier. Expectations called for a reading of 49.0.

New orders dropped to 55.8 from 58.3. The prices paid index rose to 59.0 from 51.5, compared to expectations of 52.0.

(Editing by Chizu Nomiyama)