The Institute for Supply Management’s purchasing managers index for US manufacturing decelerated to a reading of 52.7 in July, down from June’s reading of 53.5. The reading indicates continued expansion, but at a slower pace.

Readings above 50 indicate growth.

Reuters reports the reading was shy of expectations that the pace would remain unchanged at 53.5, according to a Reuters poll of economists.

The employment portion of the index also fell to a reading of 52.7 in July from 55.5 in June, reflecting growing employment levels from June but at a slower rate. The reading fell short of the Reuters poll, which expected a reading of 54.7 for the employment index.