China's manufacturing activity has maintained expansion for two straight months, an encouraging sign of improved factory activities and strengthened economic momentum.
The purchasing managers' index (PMI) for China's manufacturing sector came in at 50.4 percent in April, according to data released on Tuesday by the China Federation of Logistics and Purchasing and the National Bureau of Statistics (NBS) Service Survey Center.
A reading above 50 percent indicates expansion, while a reading below 50 percent reflects contraction.
"Generally speaking, the PMI has remained at an expansion zone of above 50 percent for two months in a row, reflecting that the macroeconomic operation follows the underlying trend of recovery and development," said Cai Jin, vice president of the China Federation of Logistics and Purchasing.
The sub-index for production in the manufacturing sector rose 0.7 percentage points to 52.9 percent in April, marking a new high since one year ago. The figure indicates that manufacturing companies have accelerated production activities.
The sub-indexes measuring the number of new orders and new export orders both remained in the expansion range, signaling a robust recovery in demand.
"In terms of different industries, the new order index and new export order index are above 53 percent for sectors such as food, beverages and refined tea, chemical fiber, rubber and plastic products, automobiles, as well as electrical machinery and equipment, with relevant industries witnessing increased demand from both domestic and foreign markets," said Huo Lihui, the head of the business climate survey division at National Bureau of Statistics (NBS) Service Survey Center.
Companies of varying sizes all saw improvements in production and demand this month, with PMI in expansion zone, and new order index and new export order index staying above 50 boom-bust line for two consecutive months.
The sub-index for business expectations stood at 55.2 percent, showing optimism among enterprises.