Chinese manufacturers' operating conditions improved at the fastest pace in four months in July, purchasing managers' data from Caixin and IHS Markit showed.
The seasonally adjusted Caixin manufacturing Purchasing Managers' Index edged up to 51.1 in July from 50.4 in June, supported by an increase in total new business.
Output and new orders expanded at the fastest rates for five months, buoyed by an upturn in new export sales, the report noted.
Meanwhile, Chinese companies kept their relatively cautious stance toward employment, with workforce numbers down again in July and the rate of job shedding at its quickest in 10 months.
"Operating conditions in the manufacturing sector improved further in July, suggesting the economy's growth momentum will be sustained. That said, it's unlikely that financial regulatory tightening will be relaxed," said Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group.
Government data released July 31 showed China's manufacturing PMI slowing to 51.4 in July. A PMI score of more than 50 indicates expansion or improvement.