Chinese manufacturing increases

Manufacturing accounts for about 40% of China's economy

China's manufacturing sector grew in June at a slightly faster pace than in the previous month, a survey suggested.

The purchasing managers index (PMI) from the state-sanctioned China Federation of Logistics and Purchasing rose to 53.2, from 53.1 in May.

It is the fourth month in a row that the sector has been positive, after six months of declines.

Analysts saw the data as a sign that the economy would start to improve in the second half of the year.

Any figure above 50 indicates growth in the manufacturing sector. In May the index had fallen slightly weaker than the previous month, although it was still in positive territory.

Manufacturing accounts for about 40% of China's economy.

A companion index compiled by brokerage CLSA also rose to 51.8 from 51.2.

"We take it as signalling that the green shoots of economic recovery have taken root and are likely to blossom in the second half of 2009," Steven Zhang and Qing Wang at Morgan Stanley said in a note.