CRI听力:Hefty PMI Rise Shows High Growth Momentum

New data shows that China's manufacturing activity quickened to the highest level in more than two years in July, reinforcing signs that the economy is firming up on government support policies.

CRI's Ding Lulu has more.

The National Bureau of Statistics and the China Federation of Logistics and Purchasing says the purchasing managers' index rose to 51.7 in July, up from 51 in June.

The PMI is a key gauge of the sector's health and a reading above 50 indicates expansion.

Zhao Qinghe is a senior analyst with the National Bureau of Statistics.

"Overall, the PMI in July shows a rise. This is the fifth consecutive monthly rise for the index and the largest gain so far this year. It indicates a still better trend for the manufacturing sector."

Zhao attributed the strength to the government's growth-stabilizing policies and the improving global economy.

The official PMI - which measures activity in bigger factories- is in line with the HSBC final PMI reading of 51.7, which better reflects the performance of smaller businesses.

Cai Jin is the deputy head of the China Federation of Logistics and Purchasing.

"It shows an improvement in the quality of both economic growth and macroeconomic control, as the rising PMI of small enterprises indicates the strengthening of forces within the domestic economy."

The official PMI number is the latest in a series of positive economic data for the world's second-largest economy.

The encouraging data follows a series of policy measures in China in recent months to help boost growth.

The steps include plans to cut taxes for small firms and speed up the construction of railway lines across the country.

China's central bank has also made more cash available for banks engaged in lending to agriculture-related businesses and small companies.

NBS statistician Zhao Qinghe says more policy measures are needed to continue the rebound, particularly among small manufacturers.

"In the next step, we shall continue to put in place the fiscal and financial policies and measures that have been issued to stimulate the real economy and remove some obstacles to the implementation of these policies and measures."

The Chinese economy expanded by 7.5%, in the second quarter this year, up from 7.4% growth in the previous three months.

For CRI, I'm Ding Lulu.