U.S. factories slowed their pace of expansion in output last month, but factories added more workers, according to survey released on Monday by the Institute for Supply Management.

The ISM said its manufacturing index slipped to 62.4 in April from March’s 62.5. Economists had forecast a rise to 63.0.

A reading above 50 shows expansion. It was the 11th consecutive month of expansion in the sector that makes up less than a fifth of the U.S. economy. In January, the index stood at a two-decade high at 63.6.

While the report showed that new orders slackened somewhat, the production and employment components of the report were stronger. The inventories segment was down to 44.8 from 48.3 in March.

But the prices-paid index rose to 88 from 86 in March, the highest reading in nearly 25 years.

The ISM index is compiled from monthly responses by purchasing executives at more than 400 industrial companies, ranging from textiles and chemicals to paper and computers.

In a separate release, the U.S. Commerce Department said construction spending climbed much more than expected during March, posting its biggest gain in eight months as residential kept rising and public-sector outlays soared.

Spending on total construction increased 1.5%, estimated at a seasonally adjusted annual rate of US$944.1 billion. It was the biggest increase since July.

The increase followed an upwardly revised 0.4% advance in February. Spending for that month was originally estimated as dipping 0.1%.

Wall Street was expecting a 0.6% increase in March outlays.

The report showed residential construction rose 0.8% at a seasonally adjusted annual rate of US$512.8 billion. Spending in February went down 0.2%. Outlays also rose for healthcare facilities, schools, office buildings, and roads.

The report said private construction spending went up 0.4% a second month in a row. Private construction includes houses, office buildings, factories and hospitals.

Year over year, total construction spending was 7.9% higher compared to March 2003.