China’s factory activity decelerated in August as export demand weakened, a survey showed Tuesday.

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The monthly purchasing manager’s index of the Chinese statistics bureau and an official industry group declined to 50.1 from July’s 50.4 on a 100-point scale on which numbers above 50 show activity increasing.

A sub-measure of new exports fell by a full point from the previous month to 46.7, according to the National Bureau of Statistics and the China Federation of Logistics & Purchasing.

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Officials have warned demand for Chinese exports was likely to weaken in the second half of the year. Factory and consumer activity have been dampened by flooding in July and tighter anti-coronavirus controls.

In a report on the latest manufacturing figures, researchers at the Chinese investment bank CICC said they expected the slowdown in demand will continue."

Overall the manufacturing industry will show a steady slowdown," it added.