According to data released by the China Federation of Logistics & Purchasing (CFLP) on Saturday, the country's Purchasing Managers Index (PMI) - a measure of manufacturing activity of the country - showed a marginal increase from 53.2 in June to 53.3 in July.

It was for the fifth month in a row that the PMI remained above the 50 mark, thereby indicating growth. From last October to February this year, the PMI was below the 50 level, indicating contraction.

While China's official PMI for July is almost 15 index points higher than the 38.8 figures, which marked a record low in November 2008, it still is below the 2009-thus-far high of the April PMI of 53.5.

Nonetheless, the July PMI gives a clear indication that the manufacturing sector in China has somewhat consolidated its recovery - with most businesses benefiting not only from a rejuvenated nationwide economy but also from a slight increase in overseas demand.

Going by Li & Fung Research Centre's English translation of the CFLP statement, out of the 11 categories that comprise the index, nine categories showed an increase; one showed a fall, and one remained flat in July, vis-à-vis the June statistics.

Commenting on the CFLP statistics, Zhang Liqun, a researcher at the State Council's Development Research Centre, said: "With domestic demand growing more quickly, we can forecast that the economic recovery will continue."