The purchasing managers' index (PMI) for China's manufacturing sector rose to 51.1 in July from 50.9 in June, the National Bureau of Statistics (NBS) said Friday.
A reading above 50 indicates expansion, while a reading below reflects contraction. It is the fifth month in a row that the figure remained in the expansion territory.
Commenting on the sustained expansion, NBS senior statistician Zhao Qinghe said: "Policies of balancing epidemic control and economic development further yield tangible fruit, as economic vitality continues recovering and enterprises keep registering better operational outcomes."
Zhao cited sub-indices of the manufacturing PMI as evidence of economic recovery across the board.
The sub-index for production edged up 0.1 points to 54 in July. New orders picked up 0.3 points to 51.7, rising for three consecutive months. While the sub-index measuring new export orders gained 5.8 points to 48.4.
"Enterprises stay optimistic about recovery in their industries," Zhao said.