The China Federation of Logistics and Purchasing said Wednesday China's manufacturing activity expanded in June for the fourth consecutive month, giving signs that China’s economy has passed the worst economic recession.

China's manufacturing sector’s PMI, the Purchasing Managers' Index stood at 53.2 %, as compared to 53.1 in May.

Government stimulus spending and record bank lending played a vital role in easing economy recovery.

The purchasing price index stood at 57.8, up 4.7 percentage points, giving signs of seventh monthly increase since December. 

The output index soared 0.2 % to 57.1 %.
 
However, the new order index plunged to 55.5 % from 56.2 % in May.

Speaking on the topic, Lu Ting, an economist with Bank of America Merrill Lynch in Hong Kong said that China’s recovery was gathering further momentum. He further said, “It has been recovering faster than the market had expected.”

A package of indices included in the PMI, measure economic performance.

Above 50 reading indicates expansion, whereas below 50 represents contraction.

To compile the index, more than 700 enterprises across China were surveyed by the National Bureau of Statistics.