BEIJING (Reuters – China’s factories activity declined in December amid COVID-19 virus outbreaks. The poll was conducted in Reuters.

According to the consensus forecast by 24 economists polled on Thursday, the official manufacturing Purchasing Manager’s Index will fall to 50 from 50.1 in November. If the reading is below 50, it means that there has been a contraction in manufacturing Purchasing Manager’s Index (PMI) from November. A reading above 50 would indicate expansion.

Analysts at Goldman Sachs (NYSE) predicted that the NBS Manufacturing PMI would fall to 49.9 from 50.1 in November.

They stated that the COVID epidemic in Zhejiang Province in mid-December likely affected industrial activity, while container throughput data pointed to a weaker December trade growth compared to November.

A small, but still serious, COVID-19 epidemic in Zhejiang, a wealthy province on China’s east coast, occurred earlier this month. It has since subsided. Some companies were forced to stop production.

The second-largest country in the world, after a remarkable recovery from last year’s pandemic-induced slump has been losing momentum over the second half. It is currently dealing with a slower manufacturing sector, problems in the real estate market, and small COVID-19 outbreaks.

Analysts predict a slowdown in Fourth Quarter Gross Domestic Product (GDP) Growth.

China’s central Chinese city of Xian has reported that it had more than 100 COVID-19 cases on Thursday. It is the largest number of locally transmitted diseases in China this year.

Micron Technology and Samsung Electronics, two of the largest memory chip makers in the world (OTC:), have both warned that the continued lockdown could impact their chips manufacturing facilities.

According to the statistics bureau, profits in China’s industry firms increased at a slower rate in November because of falling prices for some raw materials and weaker demand from consumers.

On Friday, the official PMI will be published. It primarily focuses on large and state-owned companies. Publication of the Caixin private manufacturing PMI will take place on January 4.