BEIJING (Reuters) – China’s factory activity slumped at the fastest pace in two years in March due to a local COVID-19 resurgence and economic fallout from the Ukraine war, a survey showed on Friday, strengthening the case of more policy support for the economy. The Caixin/Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 48.1 in March, indicating the steepest rate of contraction since February 2020, from 50.4 in the previous month. The 50-point index mark separates growth from contraction on a monthly basis. The deterioration in manufacturing conditions was broadly in line with th…