Industrial firms' profit dip narrows on policy steps

Further macroeconomic support seen as crucial to manufacturing recovery

China's policy efforts to alleviate the expense burden of manufacturers led to its industrial firms reporting narrowed profit declines for a third consecutive month in May, experts said on Wednesday.

They, however, said the recovery is not yet solid as sluggish demand weighs on revenue growth and intensifies cost pressures. The official purchasing managers index for June — scheduled for release on Friday — is likely to stay within contraction territory, or a reading below 50.

Further macroeconomic support, including additional monetary easing, will be crucial to boosting recovery in the manufacturing sector, the experts pointed out.