NEW YORK (CNNMoney.com) - The pace of manufacturing fell in December, coming in below Wall Street expectations according to a survey of business executives released Tuesday.

The closely watched Institute for Supply Management's index came in at 54.2 for December, down from a 56.6 reading in November.

Economists surveyed by Briefing.com had forecast a 57.5 reading for December. Any reading above 50 indicates growth in the goods-producing sector of the economy.

The ISM's employment gauge eased to 52.7 from 56.6, while new orders, a signal of future growth, dropped to 55.5 from 59.8. Prices paid declined to 63.0 from 74.0.

"In December, we saw a decline in the rate of growth of both new orders and production, but both indexes are at levels that support economic growth," said Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee.

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