The purchasing managers' index (PMI) for China's manufacturing sector came in at 49.7 in June, up 0.2 percentage points from May, official data showed on Monday.
The figure remains below the 50-mark separating growth from contraction and is in line with a median forecast of 49.7 in a Reuters poll.
The new orders sub-index rose to 50.2 from 49.8 in May, while the new export orders sub-index improved to 47.7 from 47.5.
The PMI for the non-manufacturing sector, which includes services and construction, came in at 50.5, up 0.2 percentage points from May.
Policymakers are confident they can push ahead with reforms launched late last year to transition the world's second-largest economy from a manufacturing-led model to a consumer-driven one, Premier Li Qiang told delegates at World Economic Forum and Asian Infrastructure Investment Bank meetings last week.
Such a shift in the engines of growth could be progressed while maintaining strong growth, Li said.
While the United States and China have settled on a framework trade deal, analysts expect eventual US tariffs to remain well above historic levels, maintaining pressure on exporters and officials to find alternative markets or boost domestic demand.
Analysts in a Reuters poll forecast the private-sector Caixin PMI at 49, up from 48.3 a month prior. The private data will be released on Tuesday. (Xinhua/Reuters)