China's manufacturing activity fell for a fourth straight month in July, albeit at a slower pace, sparking calls for further policy support to boost domestic demand.

According to data from the National Bureau of Statistics (NBS), the official Purchasing Managers' Index (PMI) was at 49.3 in July, up from 49.0 in June, but still below the 50-point mark that separates expansion from contraction.

The PMI was slightly higher than a forecast of 49.2.

The world's second-largest economy grew at a slow pace in the second quarter, as demand remained weak at home and abroad. The Politburo described economic recovery as "tortuous".

President Xi Jinping said the nation would achieve its annual development targets, state media reported last week. However, analysts warn the country could miss its modest growth target of around five percent for a second year in a row if the economy loses any more momentum.

The Politburo was quoted as saying earlier this month that China will implement macro adjustments to the economy "in a precise and forceful manner" and strengthen counter-cyclical adjustments, as the government sticks with prudent monetary policy and proactive fiscal policy.

Non-manufacturing PMI dropped to 51.5 in July, down from 53.2 in June, and the lowest in seven months.

Meanwhile, the composite PMI, which includes both manufacturing and non-manufacturing activity, fell to 51.1 from 52.3. (Reuters)