The business Climate Index stood at 55 percent in Q2, 0.2 percentage points higher than in Q1, according to a report from the People's Bank of China, whose results are based on surveys of over 5,000 industrial firms.
Respondents also reported improving profitability, with the index rising 4.3 percentage points compared with the previous quarter.
About 66.5 percent of surveyed entrepreneurs said the macro economy was running smoothly.
Sentiment for product selling prices improved quarter on quarter, while for raw material purchasing prices dropped.
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