The U.S. manufacturing sector expanded in November, but at a slower rate than in October, according to the Institute for Supply Management's key purchasing managers' index for manufacturing released today. Employment also expanded at a slower pace than in the previous month.

November's index reading was 53.6, down from 55.7 in October. Readings of more than 50 indicate expansion.

Norbert Ore, chair of the institute's manufacturing business survey committee said signs remain encouraging despite the slower growth. "Overall, the recovery in manufacturing is continuing," said Ore, who added that many firms are still struggling.

The employment portion of the index fell to 50.8 in November from 53.1 in October.