JPMorgan's Global Manufacturing Purchasing Managers' Index, produced with private data vendor Markit, slipped to 51.0 in June from 51.3 in May, matching April's near two-year low.
However, June was the 31st month the index has been above the 50 level that separates growth from contraction.
"The growth of manufacturing output remained subdued during the second quarter, with the rates of increase in new business and output slipping to their lowest since the first half of 2013," said David Hensley, a director at JPMorgan.
The global PMI index combines data from countries including the United States, Japan, Germany, France, Britain, China and Russia.
China’s factory activity contracted for the fourth straight month in June but at a slower pace than in May, signaling the slowdown in the world's second-largest economy may be leveling out.
The HSBC/Markit Flash China Manufacturing PMI edged up to 49.4 from 49.2 in May, remaining in contraction territory.
“The final reading of the HSBC China Manufacturing PMI pointed to a further decline in the health of the manufacturing sector," said Annabel Fiddes, economist at Markit.
“On the upside, there were some signs of improvement in total new orders and new export business, suggesting demand both at home and abroad is reviving. However, it is likely that more stimulus measures will be required to ensure that the sector can regain growth momentum and to encourage job creation.”
China's central bank lowered lending rates last weekend for the fourth time since November and trimmed bank reserve requirements, stepping up efforts to support an economy headed for its poorest performance in a quarter century.
