FACTORY activity in China expanded for a second straight month in April but at a much slower pace than expected, an official survey showed yesterday, suggesting the economy is still struggling for traction despite a flurry of support measures.

The unexpected loss of momentum at the start of the second quarter followed upbeat data in March which had raised hopes among investors that the world’s second-largest economy was getting back on firmer footing.

A private business survey yesterday also pointed to a loss of momentum, confounding expectations for a pickup, with factories starting to shed jobs again after adding staff in March for the first time in years.

The official Purchasing Managers’ Index (PMI) for manufacturing fell to 50.1 in April from March’s reading of 50.5, which was the first expansion in four months, data from the statistics bureau showed.

It hovered just above the neutral 50-point mark. Analysts surveyed previously had forecast the PMI to match March’s 50.5.

A gauge of construction activity fell to 60.1 from 61.7 in March, still solid but possibly indicating that the government’s infrastructure push may be losing steam despite a burst of bond issuance and new bank lending at the start of the year, analysts said.

Another official survey yesterday showed growth in China’s services industry also cooled in April, though it remained in solid expansionary territory.

While new factory orders remained sluggish, there were some encouraging signs on the export front.

The official index for export orders continued to contract, but hit its highest level in eight months.(SD-Agencies)