Activity in China’s manufacturing sector rebounded to a five-month high in August, data showed on Monday, as stimulus from Beijing helped to offset some of the effects of an economic slowdown and the trade war with the US.

The latest Caixin China General Manufacturing PMI index hit 50.4 during the month, compared to 49.9 in July. That is the highest reading for the index since March, as well as the first time in three months that it has risen above the 50 mark which separate expansion and contraction in the country’s manufacturing industry. The August reading was also higher than the figure of 49.8 as forecast by economists polled by Reuters.

Analysts said that the recovery had been driven partly by an improvement in domestic demand, prompting manufacturers to raise their output, which has been helped by recent  stimulus measures undertaken by authorities, such as on infrastructure spending.