NEW YORK (CNN/Money) - Manufacturing grew last month at the slowest pace in nearly two years, according to a survey of executives in the sector, in the latest sign of a slowdown in the broader economy.

The Institute of Supply Management's manufacturing index dropped to 53.3 for April, down from 55.2 in March. Economists surveyed by Briefing.com had forecast the closely watched index would come in at 55.

A reading above 50 indicates growth in the sector, and April marked the 23rd straight month of growth in manufacturing -- the longest expansion in the sector in 16 years, since nearly three years of uninterrupted growth ended in April 1989.

But the report added to a recent string of economic readings pointing to slower of growth in the U.S. economy.

"The rate of growth slowed to its lowest level since July 2003," Norbert Ore, chair of the business research group's survey committee, said in a statement.

"The trend is definitely toward a slower pace of growth, and that should relieve some of the pricing pressure that the sector has experienced during 2004 and year-to-date in 2005. Declines in inventories indicate that manufacturers are adjusting to slower growth in new orders."

The prices paid index in the survey fell to 71.0 from 73.0 reading in March, indicating prices are still increasing but at a slower pace.

Fears that the economy is being hampered by slower growth but also higher price inflation have Wall Street investors and many economists worried.

The reading on inventories showed the biggest change, falling to 47.9 from 54.1 in March, as those reporting higher inventories fell to 17 percent from 26 percent in March, while those who said they had lower inventory levels rose to 20 percent from 16 percent.

The new orders index fell to 53.7 from 57.1.

The survey's employment reading declined slightly to 52.3 from 53.3.

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