A private gauge showed China's manufacturing activity grew at a slower pace in June due to tapered factory production, diverging from a pickup shown in a competing index.
The RatingDog general manufacturing purchasing managers index fell to 51.7 in June from 51.8 in May, according to a statement on Wednesday.
A subindex showed factory production grew at the slowest pace in three months while total new orders accelerated in June, though new export business fell for the second month in a row, RatingDog said.
In order to support higher new orders and production, manufacturers in China increased employment for the first time in three months and the rate of job creation was the strongest since August 2023.
Respondents of the RatingDog survey said input costs eased notably to a five-month low in June, suggesting inflation pressure has been contained. Meanwhile, output prices rose for the sixth straight month in June.
"Overall, the manufacturing sector maintained a steady expansion in June, supported by sustained new order growth, easing cost pressures and improved labor market conditions," said Yao Yu, founder of RatingDog.
But he added that persistent external demand contraction and softening business sentiment remained risk factors to monitor for China's manufacturing sector.
Both the RatingDog gauge and the competing index compiled by China's National Bureau of Statistics showed expansion in manufacturing activity, though the latter indicated a slight improvement. The official PMI edged up to 50.3 last month from 50.0 in May.
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