The Caixin/Markit Manufacturing Purchasing Managers’ index (PMI) declined to 51.0 in June from May’s 51.1, matching economists’ forecast. It remained above the 50-point mark that separates growth from contraction for the 13th consecutive month.

The survey showed new export orders contracted for the third straight month and the most in two years, though there was no significant slide from the previous two months.

“The Caixin China General Manufacturing PMI stood at 51.0 in June, dropping slightly from a month earlier but remaining in expansion territory. The output index continued to rise, suggesting that manufacturing supply was relatively strong. The new order index dropped marginally, and the employment index dropped for the second consecutive month, indicating worsening layoffs. The index for new export orders fell to a low for the year so far and remained in contraction territory, pointing to a grim export situation amid escalating trade disputes between China and the US, which led to weak demand across the manufacturing sector," Zhengsheng Zhong, director of Macroeconomic Analysis at CEBM Group, said in a note accompanying the survey.

“Overall, the manufacturing PMI survey pointed to strengthening price pressures in June. Deteriorating exports and weak employment, along with companies’ destocking and poor capital turnover, put pressure on the manufacturing sector,” Zhong said.

On Saturday, China released its official PMI which also showed manufacturing activity fell — to 51.5 in June from 51.9 in May. The June new export orders index contracted for the first time since February, dropping to 49.8 from 51.2 in May.

China's official PMI gauge focuses on large companies and state-owned enterprises, while the reading by Caixin and IHS Markit focuses on small and medium-sized enterprises.