China's factory activity contracted for a third consecutive month in June, according to the official manufacturing purchasing managers' index (PMI). The PMI came in at 49.0, in line with expectations and indicating a contraction in activity. The country also posted its weakest official non-manufacturing PMI reading this year. Weak economic momentum and slowing global demand are putting pressure on China's growth, but it is unclear whether the government will launch aggressive stimulus measures. The Chinese yuan weakened following the release of the data. Economic growth in April and May was weaker than expected, prompting calls for more monetary support.

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