NEW YORK (CNN/Money) - The nation's manufacturing sector grew at a slower pace in October, according to a survey of industry executives released Monday that came in weaker than Wall Street expectations

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The Institute of Supply Management (ISM) manufacturing index came in at 56.8 for the month, down from the 58.5 reading in September. Economists surveyed by Briefing.com had expected the index to stay unchanged at 58.5.

The report was the third straight month of slower growth in the sector. But any reading above 50 indicates growth in manufacturing, and the October reading marked the 17th consecutive month of growth in the sector.

The October reading was the lowest since September 2003, though. And most of the subindexes that make up the overall number showed the decline in strength for U.S. manufacturers.

Most notably, the percentage of executives reporting more new orders in the month fell to 27 percent from 31 percent in September. And the percent reporting fewer new orders rose to 17 percent from 15 percent. Production numbers showed a similar decline in manufacturing activity. And new hiring also slowed.

"The decline in order backlogs is an indication that manufacturing has peaked, and some sectors are seeing this more than others," said a statement from Norbert Ore, chairman of the group's survey committee.

The index also showed manufacturers paying higher prices for goods in the month compared to September.

The ISM report is closely watched as one of the earliest readings on the state of the economy during the previous month.