BEIJING - China's manufacturing purchasing managers' index (PMI) for July fell to 50.7 percent, the fourth consecutive decline and a 29-month record low, said the China Federation of Logistics and Purchasing on Monday.

The PMI figure fell from 50.9 percent in June, as China continued to rein in soaring prices by withdrawing liquidity from the market, but it exceeded market estimates. The preliminary survey conducted by HSBC forecast the index would fall to 48.9 in July.

"The PMI has fallen for four consecutive months, indicating China's economy is still adjusting itself. Based on the economic grow rate changes, economic growth is slowing down steadily, which is in line with the goal of restructuring," said Zhang Liqun, a researcher with the Development Research Center of the State Council.

Manufacturing in China usually slows during summer. From 2005 to 2010, the monthly drop in summer was about 2.5 percent on average, according to Chang Jian, an economist at Barclays Capital.

PMI is a gauge of manufacturing expansion. A reading below 50 indicates contraction from the previous month, while a reading above 50 indicates expansion.