The Purchasing Managers' Index (PMI) of China's manufacturing sector rose for the fifth straight month in April to 53.5 percent, up 1.1 percentage points from a month earlier, the China Federation of Logistics and Purchasing (CFLP) said on Friday.

It was the second consecutive month the PMI rebounded above 50 percent since July 2008, when the index fell to 48.4 percent.

A reading of above 50 suggests expansion, while one below 50 indicates contraction.

The PMI includes a package of indices that measure economic performance. The survey, jointly conducted by the National Bureau of Statistics (NBS), covers purchasing and supply managers of more than 700 manufacturers across China.

All the April indices, except those measuring finished product inventory, raw materials inventory and suppliers' delivery time, rose with most up by less than 2 percentage points.

Indices measuring output and new orders rose by 0.5 and 2.0 percentage points to remain above 50 percent for a third straight month.

The purchasing price index was up 3.0 percentage points to 51.3percent, rebounding to above 50 percent for the first time since September last year.

The employment index rose 1.7 percentage points to 50.3 percent, the first time it rebounded to above 50 percent since October last year.

"The continuous rebound of the PMI shows Chinese economy is on track for recovery. The first-quarter investment, consumption and export figures also reflected this trend." said Zhang Liqun, a researcher with the Development Research Center of the State Council.

(Xinhua News Agency May 1, 2009)