NEW YORK (Reuters) - The pace of growth in the U.S. economy's manufacturing sector increased in June, according to an industry report released on Friday.

The Institute for Supply Management (ISM) said its index of national factory activity rose to 53.2 from 51.3 the month before. The reading was above expectations of 51.4 from a Reuters poll.

A reading above 50 indicates expansion in the manufacturing sector and a reading below 50 indicates contraction.

The employment index rose to 50.4 from 49.2 a month earlier. Expectations called for a reading of 49.0.

New orders climbed to 57.0 from 55.7. The prices paid index fell to 60.5 from 63.5, compared to expectations of 63.5.