Workers build an electric bus at a factory in Liaocheng in China's eastern Shandong province in December 2018 as the country moves to limit fossil fuel consumption
Workers build an electric bus at a factory in Liaocheng in China's eastern Shandong province in December 2018 as the country moves to limit fossil fuel consumption AFP / STR

China’s factory activity growth continued to slow in June, dragged down by shortages and port disruptions.

The official manufacturing Purchasing Managers Index slipped to 50.9 in June, from 51 in May, data released by the National Bureau of Statistics showed Wednesday. The index was at 51.1 in April.

The index was still above the 50-point mark, which separates expansion from contraction.

An outbreak of COVID-19 infections earlier this month in a major shipping port had led to restrictions that disrupted port activity, increased wait times and raised shipping costs.

Ports in Guangdong, including Shekou, Nansha, Chiwan and Yantian, issued notices banning vessels without prior reservations. Guangdong accounts for about 24% of China’s total exports, and is home to the port cities of Shenzhen and Guangzhou, the world’s third and fifth largest ports in terms of container volume.

Chip and power supply shortages also slowed the expansion in production.

Workers build an electric bus at a factory in Liaocheng in China's eastern Shandong province in December 2018 as the country moves to limit fossil fuel consumption

Photo: AFP / STR