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A reading above 50 indicates expansion in the factory sector.
But there are hopeful signs for the factory sector.
A separate report showed China's factory sector is still growing.
China's factory sector sinks the most in 32 months.
The factory sector picked up steam, but global steel output showed weakness in June.
Though employment declined, the report indicated that the factory sector was recovering.
China's economic rise has depended on a growing factory sector that benefits from a cheap renminbi.
And world trade growth, to which China's economy and factory sector are linked, has slowed sharply.
Weakness in the factory sector was seen in almost all regions, the central bank said.
A weak factory sector has been weighing on economic growth driven by consumer spending.
Activity slowed in Germany and Spain, while the French factory sector is expanding again.
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