China's manufacturing activity slowed in June

The data showed that China's manufacturing purchasing managers' index fell to 50.5 points in June from 50.9 points in May, as sentiment and employment declined as companies grew more concerned about sluggish market conditions.

The weak PMIs, which are a leading economic indicator, show that China is struggling to sustain the post-COVID-19 recovery seen earlier this year amid entrenched real estate decline, high youth unemployment and deflationary pressures. The State Council proposed other measures to subsidize consumption of household products, including home decoration and appliances, on Thursday, and also unveiled a package of tax breaks for electric vehicles amounting to 520 billion yuan ($72 billion) last month to subsidize consumption.