The purchasing managers' index rose to 50.6 percent in November from 50.2 percent in October, above the 50-percent figure that demarcates expansion from contraction, according to data released by the China Federation of Logistics and Purchasing.
Standing above the boom-bust line, the November index indicated that the economy may continue to pick up moderately, said Cai Jin, CFLP vice chairman.
Readings for sub-indices have also indicated expansion. The sub-index for new orders climbed 0.8 percentage points from October to 51.2 percent last month. The export order sub-index for November stood at 50.2 percent, up 0.9 percentage points from the previous month.
"Increases of new orders and improvements in some PMI sub-indices means companies have finished destocking, which points to further expansion in coming months," said Zhang Liqun, an analyst with the Development Research Center of the State Council, a government think tank.
The PMI rebounded to 49.8 percent in September, ending four straight months of decline.