China's official manufacturing purchasing managers' index slipped below 50 in July. That indicates a contraction in the nation's factory activity for the first time in five months.

According to data jointly released by the National Bureau of Statistics and the China Federal of Logistics and Purchasing, China's factory PMI fell to 49.9 in July from 50.0 a month ago.

A PMI reading above 50 indicates an expansion in manufacturing activity, while a reading below 50 points to a contraction.

The data compliers attribute the decline to a slack manufacturing season, as well as flooding in some manufacturing regions.