U.S. Manufacturing Expansion Slows in May

The pace of growth in U.S. manufacturing slowed modestly in May but a gauge of new orders rose to its highest in over a year, according to an industry report released on Friday.

The Institute for Supply Management said its index of national factory activity slipped to 53.5 from 54.8 in April, just missing expectations for 53.9.

A reading above 50 indicates expansion in the manufacturing sector.

Forward-looking new orders rose to their highest since April 2011 at 60.1 from 58.2 but the employment gauge eased to 56.9 from 57.3.