Non-manufacturing PMI hits 3-month high (2)

That marked the first time its figure has exceeded 50 since October 2011.

The HSBC reading was in line with the bureau's PMI figure for November, which was released on Saturday and showed a score of 50.6, up by 0.4 point from October. That marked the index's fourth consecutive monthly increase and the highest point it has reached in seven months.

The PMI's new order sub-index increased by 0.8 point from October to November's 51.2, hitting a seven-month high, and its new export orders sub-index moved back up above 50 for the first time in six months, the bureau said.

The Chinese economy is "on the mend" as both domestic and external demand continues to gain strength, said Yao Wei, China economist at Societe Generale SA.

As a result of the recovery in manufacturing output and an increase in investment supported by policy easing, the country's economic growth may speed up to 8 percent in the fourth quarter this year from a more-than-three-year low of 7.4 percent in the third quarter, according to economists.

The higher service and manufacturing PMI readings support financial services company Barclays PLC's view that "year-on-year industrial production and GDP will increase moderately in the fourth quarter".

Cai Jin, vice-chairman of the China Federation of Logistics and Purchasing, said domestic demand is playing a greater role in driving the economy.

China's economic development is likely to rebound in 2013 and grow at a rate of 7.5 percent — the same rate it is expected to show this year — or even faster, a deputy central bank governor said on Sunday.

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