A key measure of manufacturing in China rose in May. But the gauge remained below the 50-point mark separating growth from contraction for a 3rd month in a row. This is due to the effects of coronavirus lockdown measures in Shanghai and other cities.

The National Bureau of Statistics says the Purchasing Managers' Index for manufacturing stood at 49.6. That's up 2.2 points from April. The PMI is based on a survey of 3,200 companies.

The improvement is partly due to the resumption of some factory activity in Shanghai. But the lockdowns under China's zero-COVID policy have stalled production and caused logistical disruptions, leading to parts and materials shortages.

The index for the non-manufacturing sector, which includes the restaurant and hotel industries, rose 5.9 points. But at 47.8, it also remains below the 50-mark for a third straight month.

COVID cases are declining across China and authorities in Shanghai are set to start lifting lockdowns on Wednesday. This would allow businesses to resume operations.