The index tracking the sector's development climbed 2.8 percentage points over the previous month to reach 53.5 percent last month, according to the China Federation of Logistics and Purchasing (CFLP).
A reading above 50 percent indicates expansion, while one below that reflects contraction. The index has stayed above the boom-or-bust line for five consecutive months.
The business volume index was at 52.9 percent last month, 1.5 percentage points higher than the previous month, according to the CFLP.
The sub-index tracking business profits stood at 50.7 percent in July, down 6.3 percentage points from the previous month, but still at the expansion level, said the CFLP.
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