China's Purchasing Managers Index (PMI) dropped for the fourth consecutive month in July to 50.7 percent, 0.2 basis points lower compared to last month, announced the China Federation of Logistics and Purchasing (CFLP) on Monday.

The figure dropped to the lowest level in the recent 29 months, indicating a continuous slowdown of the country's manufacturing activities. The slowdown is in line with the government's recent efforts to tackle surging inflation and cool down economy.

A PMI reading above 50 indicates an expansion in manufacturing activity from the previous month, while one below shows a contraction.