China's industrial production contracted for the second month in a row in August as a result of the tightened corona measures, the real estate crisis and electricity rationing during the summer.
The official manufacturing purchasing managers' index (PMI) rose to 49.4 in August from 49.0 in July, data from the National Bureau of Statistics (NBS) showed on Wednesday.
However, the index remained below the 50 threshold, from which growth is signaled.
Experts polled by Reuters news agency had expected a PMI of 49.2.
The survey suggests that economic activity in the world's second largest economy improved little in August compared to the previous month.
Currently, 28 Chinese cities, which alone account for 15.7 percent of gross domestic product (GDP), are in lockdown or under strict virus measures - slowing demand and economic activity.
Japan's industrial production, on the other hand, grew for the second month in a row in July thanks to strong demand for cars.
It rose a seasonally adjusted 1.0 percent month-on-month in July, government data released on Wednesday showed.
Auto demand supports Japan's industry
Strong demand for cars and trucks offset a decline in electronic components and appliances.
According to a Reuters survey, analysts had expected an average decline of 0.5 percent.
Manufacturers surveyed by the Ministry of Economy, Trade and Industry (METI) expect production to increase further by 5.5 percent in August and 0.8 percent in September.
Separate data showed that retail sales came in better than expected, rising 2.4 percent in July from the same month last year.
They increased for the fifth month in a row.
Growth was fueled by stronger sales of medicines and toiletries.
According to a Reuters survey, experts had expected an increase of 1.9 percent.