(Yicai) April 30 -- Activity in China’s manufacturing sector increased for the second consecutive month this month, although growth slowed slightly from March’s clip, indicating that the economy continues to recover, according to the latest data.

The manufacturing purchasing managers’ index came in at 50.4 in April, a narrowing of 0.4 percentage point from March, according to data released by the National Bureau of Statistics today. A reading above 50 indicates expansion and one below contraction.

China’s PMI stayed above the 50 benchmark this month, demonstrating that the economy continues to pick up, said Zhang Liqun, special analyst at the China Federation of Logistics and Purchasing. Nevertheless, this month’s sub-indexes for new orders and export orders both slumped and 60 percent of companies are still complaining of insufficient demand.

The official data differs from the figures released by financial media outlet Caixin. Caixin’s manufacturing PMI for April climbed 0.3 percentage point from March to 51.4, hitting a 14-month high. The NBS polls medium to large-sized manufacturers while Caixin’s survey mainly focuses on smaller private firms.

The PMI continued to climb this month and the export order sub-index did very well, said Wang Zhe, senior economist at Beijing-based Caixin’s think tank. Optimism also remained high, but employment has not improved much and prices are staying low, making it harder for companies to make a profit.

The business activity index for the non-manufacturing sector dipped 1.8 percentage point from March to 51.2, the NBS said. While activity in the services sector tumbled 2.1 percentage points to 50.3.

The composite PMI, which includes both the manufacturing and non-manufacturing sectors, slipped 1 percentage point to 51.7, according to NBS data.

Editors: Dou Shicong, Kim Taylor