China's manufacturing purchasing manager's index (PMI) rose to 49.3 points in July, up 0.3 index point over the previous month, representing a consecutive increase, data from the China Federation of Logistics and Purchasing and the National Bureau of Statistics (NBS) showed on Monday.

In particular, production index for equipment, high-tech and consumer goods manufacturing all remained above the 50-point mark, indicating stable conditions for the new growth drivers.

In addition, production index for the raw material industry bounced back to the expansion range after running below the 50-point threshold for three consecutive months.

Separately, PMI for China's non-manufacturing sector came in at 51.5 in July, maintaining a relatively stable expansion.

The services sector expanded following a boost in leisure and tourism consumption driven by the summer holiday. Notably, the logistics, accommodation and catering industries grew rapidly with activity indexes averaging 55 points and above.

However, the construction industry experienced a pull back in July due to both high temperature and rainy weather.

With the recent introduction of policies to promote private sector growth and expand domestic demand, private sector confidence will continue to strengthen, said NBS inspector Shi Zhaohui.

Despite the steady recovery, July's PMI for small and medium enterprises, as well as employment indexes for both manufacturing and non-manufacturing sectors fell below 50 points, which means more targeted policies are needed to further enhance business confidence and boost employment, Bruce Pang, chief economist and head of research at JLL Greater China, told CGTN.

(Cover via CFP)