The purchasing managers' index (PMI) for China's manufacturing sector grew to 49.7 in July, up from 49.4 in June, the National Bureau of Statistics (NBS) said Wednesday.
A reading above 50 indicates expansion, while a reading below reflects contraction.
That was the first month-on-month PMI growth in four months, said NBS senior statistician Zhao Qinghe.
The sub-index for production gained 0.8 points to 52.1 in July, signaling faster expansion, while that for new orders rebounded by 0.2 points to 49.8.
Among the 21 industries surveyed, 12 were in the expansion zone, up from 9 in June, Zhao said when elaborating on the economic indicator.
Market sentiment warmed up as the sub-reading for business expectation rose to 53.6 in July, he said.
Wednesday's data also showed the China's composite PMI went up 0.1 points to 53.1, which pointed to steady business expansion.