China’s manufacturing activity deteriorated in June, according to preliminary HSBC data which registered a seven-month low, indicating that global problems were taking a mounting toll on China’s export-dependent industries.

The initial or “flash” version of the manufacturing Purchasing Managers’ Index dropped to 48.1 for the month on a 100-point scale, compared with the final reading of 48.4 in May, HSBC said.

A reading below 50 indicates a weakening in business conditions at factories, while one above 50 shows an improvement.

HSBC chief China economist Hongbin Qu said the data suggested exports are likely to weaken further in coming months.

He also flagged employment as the next economic pillar that could be weakened by the faltering global economy, saying subindexes showing a sharp fall in prices and a moderation in new orders suggested weak demand at home in China.

In a statement accompanying the flash PMI results, Qu said the overall conditions in June “continued to slow,” matching language used in May, and switching from HSBC comments as recently as April that China’s “slowdown [has] stabilized.”

Subindexes in the PMI survey supported the view of a structural slowdown as output, new orders, and new export orders showed contraction at a faster rate, MarketWatch reported.