Manufacturing activity in the U.S. continued to grow in August, although at a reduced pace, as employment gains cooled off and manufacturers worried about energy prices.

The Institute for Supply Management said today that its manufacturing survey for August came in at 59.0, versus a reading of 62.0 in July. It was the first reading below 60 in nine months. While the headline number receded, any reading above 50 indicates expansion in the factory sector, and the ISM noted that growth was “still quite positive.”

The components of the August ISM report were generally softer, although they still indicated an overall solid rate of growth. “August was another good month for the manufacturing sector” said Norbert Ore, of the Georgia-Pacific Corporation, who leads the ISM manufacturing survey. He added that “the near-term outlook remains positive.”

Still, the report said, “comments from respondents this month focus on energy costs, price inflation in basic materials — particularly steel — and slowing sales growth.”

Within the report, the new-orders index slid to 61.2 from 64.7 in July, while production fell to a 59.5 reading from 66.1. The employment reading contracted slightly to 55.7 from 57.3 in July. The inventories yardstick edged higher, however, moving to 51.7 from 49.9.