A leading bank survey finds that manufacturing activity in China declined this month for the first time in a year, driven by government measures to slow the economy and ease inflation.

The monthly survey by British banking giant HSBC also found that manufacturers are being hurt by rising costs for labor and raw materials as inflation remains a factor.

The so-called Purchasing Managers’ Index, or PMI, produced a reading for July of 48.9, with any number lower than 50 indicating an overall reduction in activity. That is the lowest figure since March 2009 and the first time the index has been below 50 since July 2010.

Despite the contraction, the bank’s chief economist said China is expected to post an increase in gross domestic product this year of almost 9 percent.

The government has taken steps to slow the economy, including a series of interest rate hikes and measures to limit bank lending. Nevertheless, inflation remains stubbornly high, hitting a three-year peak of 6.4 percent in June.