U.S. factory activity expanded at its slowest pace in six months in April, the latest sign that economic growth continued to lose momentum early in the second quarter, though the recovery has not been derailed, Reuters reported. Even as the economic picture has dimmed in recent weeks as the effects of government austerity started to filter through, strength in the housing market has provided an anchor. New home sales in March were at their second-highest level in three years and overall house prices rose in February, other data showed on Tuesday. "The numbers are not suggesting that the economy is surging, but none of them are really showing that the economy is falling off the cliff," said Jim O'Sullivan, chief U.S. economist at High Frequency Economics in Valhalla, New York. Financial data firm Markit said its "flash," or preliminary, factory purchasing managers' index fell to 52.0 this month from 54.6 in March as output, employment and new orders pulled back. It was the lowest index level since October, though a reading above 50 does indicate growth. -- SPA 21:02 LOCAL TIME 18:02 GMT تغريد
