Mubasher: Chinese manufacturing sector shrank for the first time since four months in June, as reports of trade tensions led to a drop in orders, according to a private survey of the country’s factories.

The Caixin purchasing managers’ index (PMI) gauging China’s manufacturing slipped to 49.4 in June, from 50.2 in May, Caixin Media and research firm IHS Markit reported on Monday.

The June reading indicated that the sector re-entered contraction territory, after the gauge recorded 48.3 last January.

New orders received by Chinese manufacturers declined during the month as suggesting a downturn in domestic demand.

The Caixin survey results came in line with China’s official manufacturing PMI, which came in at 49.4 last June, unchanged from the previous month according to National Bureau of Statistics.

By 10:03 am GMT, the Chinese yuan (CNY) rose against the US dollar, with the USD/CNY pair falling by 0.31% to CNY 6.8458.