China's Factory Activity Dips For Second Month

China's factory activity contracted at a steeper pace in April, an official survey showed on Saturday, as widespread Covid-19 lockdowns curbed production and disrupted supply chains.

The official manufacturing Purchasing Managers' Index (PMI) fell to 47.4 in April from 49.5 in March, for a second straight month of contraction, the National Bureau of Statistics (NBS) said. The 50-point mark separates contraction from growth on a monthly basis.

Activity in the mainland's services sector also shrunk for the second straight month, with the official non-manufacturing PMI falling to 41.9 in April, from 48.4 in March, the NBS said.

Dozens of major cities are in full or partial lockdowns, including the commercial hub of Shanghai, spurring more analysts to cut growth forecasts for the world's second-largest economy.

China's official composite PMI, which includes both manufacturing and services activity, stood at 42.7, compared with 48.8 in March. (Reuters)