The U.S. manufacturing sector grew for the 16th straight month in September, but the pace of growth slowed from the previous month.

The Institute for Supply Management reported today that its measure of factory activity fell to 58.5 last month from 59 in August. Readings over 50 indicate expansion, while those below suggest contraction.

Economists had expected the gauge to fall more sharply to 58.

The report’s sub-indices showed continued upward pressure on prices. Inventories and new orders were down, while measures of production and employment ticked higher.

Hurricanes were a factor for manufacturers, albeit a mixed one, causing problems for some businesses and fueling demands for others.

Meanwhile, a separate report showed consumer sentiment eroded somewhat in September. The University of Michigan reported its index measuring consumers’ assessment of the economy dropped to 94.2 at the end of last month, from a midmonth reading of 95.8, and 95.9 at the end of August. Economists had expected August’s level to hold.

The Michigan reading followed a similar report earlier in the week from the Conference Board, which showed consumer confidence slipped amid concerns about the labor market.

The Michigan report said that its current-conditions index fell to 103.7 from 107.9 in August, while expectations slipped to 88 from 88.2. The report is based on a telephone survey of about 500 households.

In another report, U.S. construction spending increased 0.8% in August to a record seasonally adjusted annual rate of US$1.015 billion, the Commerce Department said today. Overall spending in July rose a revised 1.1%, far more robust than the initial estimate of a 0.4% increase.