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Two measures of Chinese manufacturing activity closely diverged on Friday, complicating expectations for the world’s second-largest economy in September.

The Caixin China General Manufacturing Special Purchasing Managers’ Index came in at 48.1 for the month, down from 49.5 the previous month and well below the 50-point threshold that separates expansion from contraction. This number is the lowest since an equation reading in March.

The state-compiled official manufacturing PMI, which focuses more on large state-owned firms and tends to be more optimistic, came to 50.1, however, up from 49.4 in August. Analysts had expected readings of 49.5 and 49.6, respectively.

China’s economy has faltered in recent months as it has suffered repeated outbreaks of Covid-19 with strict lockdowns stifling economic activity. Chengdu, a mega city of 21 million in the southwest of the country, has been under lockdown for most of September.

The economy was also hit by a slowdown in the real estate sector, which led to a 50 percent increase in Overdue real estate loans for the four largest banks in the country. The Financial Times reported this month that local government funds have responded with a spending spree seeking to rescue cash-struggling counties.

The Caixin survey indicated that activity was dampened by a drop in new business and lower prices, which fell at the fastest rate since December 2015 as Covid weakened demand.

“The negative impact of Covid controls on the economy is still evident,” said Wang Zhe, chief economist at Caixin Insight Group, noting that supply and demand have slumped, the labor market remains weak, and business confidence wanes.

“Policy implementation should focus on boosting employment, granting subsidies, increasing demand, and enhancing market confidence.”