China’s manufacturing activity contracted for the seventh straight month in February, underscoring the needs of more measures to bolster economic growth and carry out structural reforms, Chinese state-run news agency Xinhua reported.

The Chinese National Bureau of Statistics announced this week the official manufacturing Purchasing Managers’ Index (PMI) fell to 49 in February from 49.4 in January. A reading above 50 indicates expansion in activity while a reading below 50 reflects contraction.

Zhao Qinghe, a senior statistician at the bureau, was quoted saying the retreat in February was due to the Chinese New Year, when some factories close for the holidays. This year the festival was in early February.

February’s reading was also the lowest since November 2011, as “China is seeking new economic growth engines amid a campaign to cut industrial overcapacity,” the report said.

The bureau also said the official non-manufacturing PMI stood at 52.7 in February, down by 0.8 percentage points from the previous month.