Chinas factory activity expanded at a slower pace and missed forecasts in April as supply bottlenecks and rising costs weighed on production and overseas demand lost momentum. The official manufacturing Purchasing Managers Index PMI fell to 51.1 in April from 51.9 in March, data from the national Bureau of Statistics NBS showed on Friday. It remained above the 50point mark that separates growth from contraction on a monthly basis but was below the 51.7 expected in a Reuters poll of analysts.

That contrasted with a privatesector survey, also released on Friday, which showed factory activity in April expanded at the fastest pace in four months although businesses in that release also reported a sharp surge in input costs. Chinas economic recovery quickened sharply in the first quarter of the year with record growth of 18.3, shaking off the hit from last years Covid19induced slump. Analysts now expect the worlds secondlargest economy to grow 8.6 in 2021.

The robust economic recovery has outpaced rebounds seen in manufacturing competitors such as India, which are still struggling to contain new waves of coronavirus outbreaks. Overseas demand should also pick up as Covid19 is brought under control in major markets like the United States and Europe, she said, but chip shortages could continue for several quarters and push up prices of electronic goods. The official PMI, which largely focuses on big and stateowned firms, showed businesses again laid off workers in April after…