The Purchasing Managers' Index (PMI) of China's manufacturing sector stood at 53.3 percent in July, the China Federation of Logistics and Purchasing said Saturday.

The figure was up 0.1 percentage point from June. The June index gained 0.1 percentage point from a month ago.

A reading of above 50 suggests expansion, while one below 50 indicates contraction.

The PMI includes a package of indices that measure economic performance. The survey, conducted by the National Bureau of Statistics, covers purchasing and supply managers in more than 700 firms across China.

The purchasing price index climbed 2.1 percentage points to 59.9 percent in July, the eighth monthly increase since December.

The output index was 57.3 percent, up 0.2 percentage point from a month ago. The new order index was 55.5 percent in July, same as that in the previous month.

"The reading of the July index indicates China's economic development continues improving," said Zhang Liqun, a researcher with the Development Research Center of the State Council.

The momentum of the country's economy would remain strong with expanding domestic demand, Zhang said.

China's economy rose 7.9 percent year on year in the second quarter of this year, up from 6.1 percent in the first quarter and 6.8 percent in the fourth quarter of last year.

(Xinhua News Agency August 1, 2009)