According to official figures, a key indicator of China’s factory activity fell further in November.
The purchasing managers’ index (PMI) fell to 48 from 49.2 in October.
It comes as strict Covid restrictions and weaker global demand weigh on the world’s second largest economy.
The past few days have seen violent protests against President Xi Jinping’s zero-Covid measures, with major cities locked down.
The non-manufacturing PMI – which measures business sentiment in the services and construction sectors – also fell to 46.7 from 48.7 the previous month – the lowest reading in seven months.
Any number below 50 indicates a decrease compared to the previous month.
Earlier this month the government introduced a series of measures to shore up its slowing economy. Last Friday, China’s central bank changed its reserve ratio for banks, giving lenders more money to lend. This was seen as a positive move to support the struggling real estate sector.
China has seen a surge in Covid-19 cases in recent weeks, with more than 37,000 cases reported on Tuesday – surpassing the previous peak set in April.
Frustration has turned to anger among students and workers at the country’s strict zero-Covid policy.
Thousands took to the streets in China last weekend demanding an end to the strict measures – some even calling for the resignation of President Xi Jinping.
On Tuesday, Chinese health officials said authorities were working to reduce the “discomfort” caused by the Covid pandemic.
Mi Feng, spokesman for China’s National Health Commission (NHC), told reporters that lockdowns “should be imposed and relaxed quickly” and “excessive control measures should be continuously corrected.”
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