China's factory activity shrank for the second consecutive month in June while the non-manufacturing sector expanded at a slower pace,official data showed on Sunday.
Data from the National Bureau of Statistics showed that China's official purchasing managers index for the manufacturing sector stood at 49.5 in June, flat with the figure in May, below the 50-point mark that separates growth from contraction.
The sub-index for production came in at 50.6 in June versus 50.8 in May, while the gauge for new orders came in at 49.5 in June, down from 49.6 in May, the NBS said.
China's non-manufacturing PMI, which incorporates subindexes for service sector activity and construction, came in at 50.5 in June versus 51.1 in May. The country's official composite PMI, which includes both manufacturing and nonmanufacturing activities, dropped from 51 in May to 50.5 in June, the NBS said.
"China's overall economy continued the expansion trend, but the foundation for sustained recovery and improvement still needs to be strengthened," said Zhao Qinghe, an NBS statistician.
NBS data showed manufacturers expressing strong optimism and confidence with the gauge for manufacturers' expectations for their production and operation standing at 54.4 in June versus 54.3 in May.