HSBC China's manufacturing purchasing managers index rose to 50.1 last month.
According to Business Insider, numbers met predicted estimates after significantly rising to the four-month high after an 11 month low of 47.7 in July, the official index also increased to a 16-month high of 51. HSBC China chief economist Hongbin Qu told Business Insider in a press release numbers have started to return to normal.
"This implies that growth in China's manufacturing sector has started to stabilize on the back of a modest rebound of new orders and output,"Qu said, "This was mainly driven by the initial filtering through of recent stimulus measures and companies' restocking activities. We expect some upside surprises to China's growth in the coming months."
Despite the improvement, sub index statistics demands for products out of the country were weak as requests fell for the fifth consecutive month in July Business Insider reported. The sub-index for employment also dropped for the fifth month in a row, except at a slower rate.
Business group Societe Generale's Wei Yao told Business Insider, the PMI has a positive outlook.
"The official PMI report painted a picture of a domestic demand-led recovery," Yao told Business Insider in a statement. "Although we remain cautious of the sustainability of this recovery, given such a momentum, data in the next two months will probably continue on a positive trend."
According to Business Insider, although the official series is performing better overall than the HSBC series, both are showing signs they are improving in the manufacturing area,
China's gross domestic product for the second quarter only rose 7.5 percent creating a concern the chinese economy was not in a good financial state.
Premier Li Keqiang said China would use the percentage to grow Business Insider reported.
