The purchasing managers' index (PMI) for China's manufacturing sector came in at 49.5 in March, down from 50.2 in February, data from the National Bureau of Statistics (NBS) showed Thursday.
A reading above 50 indicates expansion, while a reading below reflects contraction.
The resurgence of domestic COVID-19 outbreaks and mounting geopolitical uncertainties have weighed on China's factory activities in March, said NBS senior statistician Zhao Qinghe.
In March, the sub-index measuring purchase prices of major raw materials rose 6.1 percentage points from February to 66.1. The sub-index for prices at the factory gate was 56.7, up 2.6 percentage points from last month.
The sub-index for production stood at 49.5, down 0.9 percentage points from last month, entering the contraction zone.
Thursday's data also showed that the PMI for China's non-manufacturing sector came in at 48.4 in March, down from 51.6 in February.
