Economic activity in the manufacturing sector expanded in November but at a slower pace than October, according to the Institute for Supply Management’s purchasing managers index for US manufacturing. November’s index reading was 58.2, down from October’s reading of 58.7.

Any reading above 50% generally indicates improving conditions.

Even with the decline, the index pointed to growth ahead and was only marginally below a September reading that was the highest since May 2004, Reuters reported.

The employment portion of the index also edged down to a reading of 59.7 in November from 59.8 in October, which Reuters said could point to less strength in manufacturing hiring this month than analysts had expected.

“Employment expansion remains strong in spite of signs of labor market tightening,” said Timothy Fiore, chair of the Institute for Supply Management manufacturing business survey committee.