China’s manufacturing sector has shrunk for the third month in a row, with Beijing’s zero-Covid policy causing more logistics disruption and a dip in ocean shipment volumes.

The Caixin China General Manufacturing Purchasing Managers’ Index (PMI) came in at 49.2 for October, the third consecutive month the number has been below 50, indicating a contraction in activity.

Wang Zhe, senior economist at Caixin Insight Group, said: “Manufacturing activity was still weighed down by Covid-19 outbreaks and consequent tightening of prevention and containment measures.

“Both output and new orders saw further declines, though at a slower pace, as Covid controls dragged business activity and consumer demand down. Overseas demand also continued to weaken, albeit again at a slower pace.”

Furthermore, delivery performance worsened slightly for the fourth straight month, Caixin noted, with some surveyed companies citing “limited production capacity at vendors, which led to delays”.

In Zhengzhou, China’s zero-Covid policy is wreaking havoc on Apple supplier Foxconn. The Taiwanese manufacturer employs some 200,000 workers across the Zhengzhou complex known as “iPhone city”. but many are fleeing to their home towns to escape “inhumane closed loop” restrictions, according to reports.