The Purchasing Managers' Index -- a key measure of industrial output -- came in at 49.7, according to the National Bureau of Statistics (NBS).
The figure was higher than May's 49.5 and slightly above the 49.6 estimated by a Bloomberg pool of analysts.
However, it fell below the 50-point mark separating growth and contraction for the third straight month.
China's "economic prosperity level remained expansionary overall" in June, NBS statistician Zhao Qinghe said in a statement.
"Manufacturing production activity accelerated, and market demand improved," Zhao said.
Zichun Huang, China economist at Capital Economics, said the June figures "suggest that China's economy regained some momentum, supported by a rebound in manufacturing and construction".
"But we remain cautious about the outlook, as weaker export growth and a fading fiscal tailwind is likely to slow activity in the second half of the year," Huang said.
China's economy has struggled to sustain its post-pandemic recovery as it battles a prolonged debt crisis in the crucial property sector, chronically low consumption and elevated youth unemployment.
It has also been hit by a fusillade of import tariffs unleashed by US President Donald Trump since the start of the year.
However, Beijing and Washington called a truce on the staggeringly high duties in May, and Trump said on Sunday that the United States was "getting along well with China".
mjw/pbt/sco
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