The Purchasing Managers' Index (PMI), a key indicator of manufacturing activity, stood at 47.4 in April.

A number above 50 indicates an expansion in activity and below that indicates a contraction.

Authorities said the "decline in production and demand" has deepened.

Since March, an epidemic outbreak, the strongest since the beginning of 2020, has affected almost all the provinces of China.

Beijing intends to continue its zero Covid policy, which consists of restricting movement and confining tens of millions of people, particularly in the northeast of the country and in Shanghai, the Chinese economic capital.

Its 25 million inhabitants have been largely confined to their homes since the beginning of April.

These strict measures have blocked supply chains due to a lack of truckers, while goods have accumulated in its port, one of the largest in the world, and a key entry and exit point for goods. in China.

Machinery factory in Nantong, eastern China, May 26, 2021 STR AFP / Archives

Zhao Qinghe, a senior statistician with the National Bureau of Statistics (NBS), acknowledged that some companies had to reduce or stop production, while many companies reported increased transportation difficulties.

"The production and operation of enterprises have been greatly affected," Zhao said, according to a statement from the BNS which also noted that commodity price indices remain "relatively high".

The PMI index for non-manufacturing goods also fell to its lowest level since the start of 2020, according to figures from the SNB.

On Saturday, the PMI index published by the Caixin media group, also showed a second consecutive month of deterioration, the figure falling from 48.1 last month to 46.0.

Caixin's figure, which polls mainly SMEs, is seen by some as a more accurate reflection of China's economic situation than official government figures, which more closely track the situation of large state-owned groups.

"Covid measures have wreaked havoc (in terms of) logistics," Wang Zhe, an economist at Caixin Insight Group, said in a statement.

Caixin also noted that companies have expressed concerns about the duration of restrictions taken to combat Covid.

On Thursday, tech giant Apple warned that Covid-related restrictions in China were among the factors that would reduce its revenue by $4 billion to $8 billion in the third quarter of its staggered fiscal year (April to June). ).

© 2022 AFP