(Yicai) July 31 -- Activity in China’s manufacturing sector contracted for the fourth consecutive month in July to the lowest since April, as factories entered the traditional off-peak season and high temperatures and heavy rainfall affected production.

The manufacturing purchasing managers’ index came in at 49.3 this month, down from a three-month high of 49.7 in June, 49.5 in May, and 49 in April, according to data released by the National Bureau of Statistics today. A reading below 50 indicates contraction.

The PMI fell into contraction territory in April amid escalating China-US trade tensions.

Manufacturing output remains in modest expansion, while demand has softened, said Zhao Qinghe, senior statistician at the NBS, adding that market expectations have improved.

Production and new orders fell to 50.5 and 49.4 from 52 and 50.2, respectively, while sentiment improved to a four-month high of 52.6 percent from 52.

The non-manufacturing PMI, which includes the construction industry and the services sector, fell to 50.1 from 50.5, but remained in expansion territory, the data also showed.

The services PMI fell to 50 from 50.1, and the construction PMI slid to 50.6 from 52.8, mainly because building work slowed due to adverse factors, such as persistent high temperatures and heavy rainfall in some regions, Zhao noted.

The composite PMI, which combines the production sub-indexes of the manufacturing PMI and the non-manufacturing PMI, dropped to 50.2 from 50.7, indicating an overall expansion in China’s business activity.

Editor: Futura Costaglione