Economic activity in the U.S. manufacturing sector expanded in July for the sixth consecutive month, while the overall economy grew for the 69th month in a row, the Institute for Supply Management (ISM) said Wednesday.

The Tempe, Arizona-based trade group said its manufacturing index, which reflects the opinions of purchasing managers at factories, plants and utilities, registered 53.8 in July, down from 56.0 in June.

A reading above 50 indicates growth while a reading below 50 indicates contraction. The July reading was the slowest pace since March.

"Following a strong second quarter, the manufacturing sector moderated somewhat this past month," said Norbert J. Ore, chair of the ISM's manufacturing business survey committee, while issuing the report.

Continuing strength in new orders and production indicate that third quarter performance should still be quite good, Ore said, adding that upward pricing pressures now in their seventh month continue to be a major concern for supply managers.

For July, index for new orders stood at 57.5, down from 60.3 in the previous month. Production index declined to 55.6 from 62.9. The index for prices registered at 65.0, compared with 68.0 in June.

The 10 industries reporting growth in July -- listed in order --are wood products; furniture and related products; food, beverage and tobacco products; miscellaneous manufacturing; paper products; textile mills; chemical products; computer and electronic products; nonmetallic mineral products, and primary metals.

The manufacturing index has bounced above and below 50 for several months. It showed contraction in November, rebounded in December, fell back again in January, then kept expansion.

The ISM is a trade association representing approximately 40,000 supply management professionals.