The Purchasing Managers Index (PMI) of China's non-manufacturing sector was 55.5 percent in October, up 1.8 percentage points from September, an official survey showed on Saturday.
The monthly figure, a key economic indicator, was released by the China Federation of Logistics and Purchasing (CFLP).
The relatively high figure can boost market confidence and contribute to the foundation for a stable economic growth, said Cai Jin, CFLP vice chairman.
The reading was the same as that in October last year. In the past 12 months, the September reading of 53.7 percent was the lowest and the March reading of 58.0 percent was the highest, according to the CFLP figures.
A PMI reading above 50 percent indicates expansion from the previous month, while readings below this indicate contraction.
The index for new orders dropped 0.2 percentage points to 51.6 percent, indicating a continued market growth but with a slight slowdown.
In terms of sectors, the construction sector gained pace in growth with its figure at 60.2 percent, up 2.2 percentage points from September. The index for the service sector was 54.4 percent, up 1.8 percentage points from the previous month.
Only the wholesale and the air transportation sectors showed indexes under the critical point of 50 percent, indicating contraction.
These figures followed Thursday's manufacturing sector PMI which rose to 50.2 percent from 49.8 percent in September, just above the 50-percent figure that demarcates expansion from contraction.
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