THE Purchasing Managers' Index for China's non-manufacturing sector rose to 60.1 in July, up 2.7 points from the previous month due to more demand in retail and catering services, the China Federation of Logistics and Purchasing said yesterday.

The trend differed from China's manufacturing PMI, which softened to 51.2 in July from June's 52.1, the lowest level since February 2009.

Non-manufacturing PMI measures activity in agriculture and services. A reading above 50 indicates expansion, while below 50 indicates contraction.

The July rise came after two consecutive monthly drops and was the fifth straight month for the reading to remain above 50.

The new orders index jumped to 55.8 last month, up 2.9 points from June. The index for the real estate industry swung back to a level above 50.

The federation urged the government to adhere to a balance between stable and relatively fast economic growth and revamping the economic structure, according to Xinhua news agency.

China will stick to a relatively loose monetary stance in the second half of this year, with an emphasis on implementing policy flexibility, the People's Bank of China said on Sunday.

The central bank's notice was in line with its previous stance. China's economic leaders have ruled out major shifts in coming months by repeatedly pledging to maintain policy consistency and stability.