(Bloomberg) -- China’s factory and non-manufacturing activity continued to ease in July, implying a more steady economic recovery into the second half of the year.

The official manufacturing purchasing managers’ index fell to 50.4 from 50.9 in June, the National Bureau of Statistics said Saturday, below the 50.8 median estimate in a Bloomberg survey of economists. Readings above the 50-mark signal an expansion in output.

The non-manufacturing gauge, which measures activity in the construction and services sectors, eased to 53.3, in line with forecasts.

China’s V-shaped rebound has stabilized in recent months, with growth showing more balance in the second quarter as consumer spending recovered. Manufacturing has been supported by strong export demand during the pandemic, and while it’s likely to slow somewhat in coming months, output is expected to remain solid.

There are risks that are clouding the outlook though. A shortage of computer chips and electricity has curbed factory expansion, and recent Covid-19 outbreaks, like in Jiangsu province, a major manufacturing hub, are also a worry, threatening to hamper some production and weigh on consumer spending.

Other key highlights from the PMI data:

  • New orders sub-index fell to 50.9 from 51.5
  • New export orders index dropped to 47.7 from 48.1
  • Sub-index for manufacturing jobs rose slightly to 49.6; non-manufacturing employment increased to 48.2
  • Construction subindex declined to 57.5

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