BEIJING: Factory activity in China slowed in April as a global shortage of shipping containers hindered the movement of goods, official data showed Friday, but wider demand remained robust as the domestic economy rebounds from the coronavirus pandemic.

The Purchasing Managers’ Index (PMI), a key gauge of manufacturing activity, came in at 51.1 this month — lower than in March but still above the 50-point mark separating growth from contraction, according to the National Bureau of Statistics.

But challenges remained, with some companies reporting problems “such as chip shortages, blockages in international logistics, a lack of containers, and rising freight rates”, said NBS senior statistician Zhao Qinghe in a statement.

This has affected the delivery time of suppliers in high-tech manufacturing, particularly in the past three months, while the procurement cycle of raw materials has become longer, weighing on production.

World trade is being slowed by a shortage of containers because of skewed demand during the pandemic, which has seized up the highly coordinated flow of goods around the world.

The lack of containers has pushed the price of cargo up, with a knock-on for factory activity.

But overall the picture is positive for China’s manufacturers. On Friday, official data showed the non-manufacturing PMI fell to 54.9, down from 56.3 in March, with activity in the construction sector easing although the service industry continued its recovery.