The U.S. manufacturing sector expanded in August at a slower pace than the previous month, the Tempe, Ariz.-based Institute for Supply Management, reported today.

The ISM said its index of business activity in the manufacturing sector registered 52.9 in August, down from 53.8 in July.

Wall Street economists were expecting a reading of 53.

“Viewed from the manufacturing sector, the overall economy continues to grow at a significant rate. In comparing August to July, the rate of growth in manufacturing was slightly less but continues the expansion, although at the slowest pace in the past five months. Both the New Orders Index and the Production Index are encouraging for continuing growth as we head toward the fourth quarter of 2007,” said Norbert Ore, ISM chairman, in a news release.

Readings above 50 indicate expansion and below 50 indicate contraction.