July official Manufacturing PMI in China hits 27-month high of 51.7%.

It’s five consecutive months of improvement.

July official Manufacturing PMI jumped from 51.0% in June to 51.7%, marking the fifth-consecutive month of improvement.

According to a research report from CCB International, the Production Index rose from 53.0% in June to 54.2% in July, the highest level since last November, suggesting a strong rebound in production activity.

The New Order Index and New Export Order Index were 53.6% and 50.8%, up 0.8ppt and 0.5ppt from June, indicating rising demand both domestically and abroad.

Here’s more from CCB International:

PMI for small enterprises reached 50.1% in July, entering expansionary territory for the first time since April 2012, suggesting that supportive government policies to small businesses are having the desired impact.

This is consistent with the HSBC PMI Final Reading, which increased from 50.7% in June to 51.7% in July, highest level since February 2013.

The HSBC survey covers mainly small- and mid-sized companies.

The upbeat official and HSBC PMI numbers indicate China’s economy is stabilizing and that Chinese government measures to shore up growth seem to be working.