The purchasing managers' index (PMI) for China's manufacturing sector came in at 49 in July, down from 50.2 in June, data from the National Bureau of Statistics (NBS) showed Sunday.
A reading above 50 indicates expansion, while a reading below reflects contraction.
Negative impacts including the traditional production off-peak period, insufficient market demand, and the weakened performances of energy-intensive industries have weighed on the industry, according to NBS senior statistician Zhao Qinghe.
Pressured by the complex internal and external environment, the sub-index for production and operation activity expectation went down 3.2 percentage points from last month to 52, but has remained in the expansion area.
The data also showed that the PMI for China's non-manufacturing sector came in at 53.8 in July, down from 54.7 in June.