Chinese manufacturing activity declined in July due to falling export orders, putting pressure on the ruling Communist Party to reverse an economic slowdown.

The purchasing managers’ index rose to 49.3, but remained below the 50-point level, indicating activity contraction.

Policymakers are encouraging entrepreneurs to boost the economy, but have not announced large-scale stimulus or tax cuts.

Export orders fell to 46.3, and economic growth fell from 2.2% in January-March to 0.8% in June, China’s worst annual growth in decades.