China’s manufacturing activity slowed in April from March but remained in expansion territory for a second straight month, according to the official Purchasing Managers Index. The index declined to 50.1 in April from the previous month’s 50.2. That came as activity in the non-manufacturing sector was well within the expansion zone.

The official Purchasing Managers’ Index came in at 50.1 in April, easing from March’s 50.2 and barely above the 50 mark that separates expansion from contraction.The survey’s compiler says March saw a sharp increase in orders because of the end of the Lunar New Year holiday. But that production returned to its normal range in April with mild increases in new investments and orders.

The non-manufacturing business activity index was 53.5 in April. That was slightly lower than the March’s 53.8 reading but still well within expansion territory. Sector-wise, construction activity surged 1.4 points to 59.4 in April. That was its highest reading since last August.

Analysts say the manufacturing sector will remain under pressure because of declines in new investments and orders. But expansion in the non-manufacturing sector will continue due to the May holiday season and a surge in demand for food and beverages.