GROWTH in China’s manufacturing sector stalled in June, an official survey showed Friday, adding to expectations that the government will have to roll out more stimulus soon to boost the sluggish economy.

    While output hit a 12-month high, nearly all other measures showed signs of weakening, suggesting a spring bounce in activity is fizzling. Export orders and inventories fell and factories shed workers at a faster rate.

    A similar survey showed activity in China’s services sector picked up in June, which if sustainable would indicate progress in the government’s bid to rebalance the economy.

    But strength in services is not expected to be strong enough to support growth if manufacturing continues to decline, and analysts are raising expectations of more government spending and policy easing by the central bank.

    The outlook for Chinese exporters, a major force in the manufacturing sector, has been clouded further by Britain’s vote last month to exit the European Union, which Premier Li Keqiang said “increased uncertainties in the global economy.”

    The Brexit vote and weaker economic growth globally have impacted exporters, China’s statistics bureau said in a statement with the data.

    The official Purchasing Managers’ Index (PMI) eased to 50.0 in June from 50.1 in May and right at the 50-point mark that separates growth from contraction on a monthly basis.

    A private survey of manufacturers painted an even darker picture, showing activity shrank more than expected in June and for the 16th month in a row. The Caixin/Markit Manufacturing Purchasing Managers’ index (PMI), which focuses more on smaller to mid-sized firms, fell to 48.6 from May’s 49.2.

    In light of renewed weakness in the manufacturing sector and fresh risks posed by Brexit, analysts expect the Chinese Government to take new measures to support growth, possibly as early as this month.

    “We believe the government will stimulate the economy by hastening infrastructure investment and urbanization. The PBOC may also cut interest rates or the reserve requirement ratio to boost business confidence,” ANZ said in a research note.(SD-Agencies)