China's factory activity was contracted in December for the third straight month as the COVID-19 outbreaks continue to weigh on both output and demand, according to the National Bureau of Statistics.

The official purchasing managers index for China's manufacturing sector fell to 47 in December after 48 in November, data from the NBS showed. A PMI reading above 50 points signals expansion, while one below signals contraction.

Zhao Qinghe, a senior statistician with the NBS, linked COVID disruption to declines in both demand and supply in the manufacturing sector as well as logistics. 

According to Zhao, 56.3 percent of the surveyed manufacturing enterprises said their businesses were severely impacted by the pandemic, compared with 40.8 percent in the previous month. 

A sub-index for production came in at 44.6 in December versus 47.8 a month earlier, and a gauge of new orders came in at 43.9 compared with 46.4 in November. Also, the sub-index for raw materials came in at 51.6 versus 50.7 a month earlier. 

China's non-manufacturing PMI came in at 41.6 in December after 46.7 in November. Also, the country's official composite PMI, which includes both manufacturing and services activities, came in at 42.6 compared with 47.1 in November, according to the NBS.

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