Manufacturing activity in China declined slightly month-on-month in July; due to floods and weak demand, Chinese state-run news agency Xinhua reported.

The National Bureau of Statistics of China announced on Monday the manufacturing purchasing managers’ index (PMI) was 49.9 in July, down from 50 in June. A reading above 50 represents an expansion in activity, while a reading below 50 indicates contraction.

Zhao Qinghe, a senior technician at the bureau, said – as quoted by Xinhua – the floods that recently hit much of the country disrupted manufacturing activities and transportation in July. Slowing market demand and weak investment sentiment in the private sector also contributed to the sequential contraction, he added.

The bureau also announced the non-manufacturing PMI stood at 53.9 last month, up by 0.2 percentage points from June.