BEIJING, Jan 3 Reuters China39;s factory activity shrank at a sharper pace in December as surging COVID19 infections disrupted production and weighed on demand after Beijing largely removed antivirus curbs, a private sector survey showed on Tuesday.

The CaixinMarkit manufacturing purchasing managers39; index PMI fell to 49.0 in December from 49.4 in November. The index has stayed below the 50point that separates growth from contraction for five straight months.

The reading was the lowest since September but beat analysts39; forecast of 48.8 in a Reuters poll.

China39;s larger official PMI survey on Saturday showed a much sharper decline, with the activity index falling to a near threeyear low. The Caixin survey focuses on smaller, exportoriented firms.

The figures provide a snapshot of the challenges faced by Chinese manufacturers who now have to contend with surging infections after the country39;s abrupt COVID policy Uturn in early December.

Supply contracted, total demand remained weak, overseas demand shrank, employment deteriorated, logistics was sluggish, manufacturers faced growing pressure on their profitability, and the quantity of purchases as well as inventories stayed low, said Wang Zhe, senior economist at Caixin Insight Group.

Weakening external demand amid slowing global growth continued to drag on orders for exportoriented producers, with the Caixin subindex of new export orders shrinking at the fastest pace since September.

Logistics snags…