Economic Buzz: China's official PMI shows manufacturing activity contracts for a third month

China?s manufacturing activity contracted for a third straight month in June, an official survey showed on Monday, despite Beijing?s stimulus efforts helping to stabilize certain aspects of the industrial sector.

The official purchasing managers? index (PMI) improved slightly to 49.7 in June from 49.5 in May but stayed below the 50-benchmark separating expansion from contraction, according to data from the National Statistics Bureau.

The sub-index tracking production rose to 51, and the gauge tracking new orders ticked higher to 50.2, indicating improvement in industrial activity and demand.

Inventory and employment levels at factories, however, continued to decline, coming in at 48 and 47.9, respectively.

The non-manufacturing PMI, which includes services and construction, rose to 50.5 from 50.3 in May.

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