BEIJING — The China retail prosperity index, a barometer of retailers' expectations for the sector, rebounded to the expansion zone in July, according to the China General Chamber of Commerce (CGCC) on July 6.

The index rose by 0.5 percentage points from the previous month to 50.2 percent in July, data from the CGCC showed.

A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

The rebound of the index showed that the retailers' expectations for consumption recovery have strengthened as government policies to stabilize the economy took effect, said Zhang Lijun, vice president of the CGCC.

The index was compiled based on the monthly surveys of operations managers in the country's retail industry. The survey involves more than 3,000 sampling enterprises and covers over 20,000 retail stores nationwide.