Factory output rises in July

Manufacturing gains indicate steady revival of momentum in H2

The faster-than-expected expansion of China's manufacturing sector in July indicates a steady recovery of the economy during the second half of the year, experts said on Friday.

The government is expected to ramp up fiscal support to boost domestic demand and lend targeted help to hard-hit small businesses, as part of the efforts to maintain momentum despite lingering uncertainties, they said.

The purchasing managers index for the manufacturing sector rose to a four-month high of 51.1 in July, versus 50.9 in June, indicating that the sector has accelerated its recovery from the COVID-19 epidemic, the National Bureau of Statistics said on Friday. A reading above 50 indicates expansion, while a reading below that reflects contraction. The index has stood above 50 for five months since March.