China's factory activity shrank for the third consecutive month in July, while the non-manufacturing sector expanded at a slower pace, official data showed.

Data from the National Bureau of Statistics (NBS) showed that China's official purchasing managers index (PMI) for the manufacturing sector stood at 49.4 in July, down from 49.5 in June. This is below the 50-point mark that separates growth from contraction.

Zhao Qinghe, an NBS statistician, explained that the decline in the official manufacturing PMI was due to July being the traditional offseason for production. Other contributing factors included insufficient demand and extreme weather in certain regions, such as heatwaves and floods.

The sub-index for production was 50.1 in July versus 50.6 in June, while the gauge for new orders came in at 49.3 in July, down from 49.5 in June, the NBS reported. (China Daily)