NEW YORK (CNNMoney.com) - The pace of manufacturing slowed in January, according to survey of industry executives released Wednesday that came in a bit weaker than Wall Street expectations.

The Institute of Supply Management's manufacturing index came in at 54.8, down from the reading of 55.6 in December. Economists surveyed by Briefing.com had forecast the index would slip to 55.5.

Any reading above 50 indicates growth for the manufacturing sector, though, so the January report marked the 32nd straight month of expansion in manufacturing.

The index showed the pace of new orders and hiring plans both slowing in the month. The production reading of the index slowed slightly. The report also showed an increases in prices paid in the most recent survey.

But other areas of the index contained mostly good news. The survey found an increase in the backlog of orders following declines in the previous three months. While overall new orders were down, there was an increase in export orders. And the executives' reading on their customer inventories also improved.

"It's got some weakness, but it's not an overpowering weakness. All the components are all reasonably firm," said Bob Brusca of FAO Economics. "Clearly there is a weakening, but the momentum is not yet terrible. You can paint this as kind of a Goldilocks reading, not too hot, not too cold."

The ISM is watched as one of the first readings on the strength of the economy the previous month.

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