The purchasing managers' index (PMI) for China's manufacturing sector came in at 49.2 in January 2024, up from 49 in December last year, official data showed Wednesday.

The figure rebounded after a three-month decline which started in October 2023, indicating an improvement in manufacturing activity, according to data released by the National Bureau of Statistics (NBS). The PMI for December, November and October was 49, 49.4 and 49.5, respectively.

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

NBS senior statistician Zhao Qinghe said factories saw accelerated production and an increase in new orders this month, while their expectations remained stable in January.

Driven by a robust food and beverage sector, entertainment, and medicine production, the sub-index measuring manufacturing production climbed to a 4-month high. Export orders registered major improvement, reflecting the recovering external demand, and new orders for equipment and high-tech manufacturing, as well as consumer goods, continued to expand.

The business outlook largely remained stable, with the expectations of medicine, auto, and railway and shipping equipment producers persisting in high-climate territory.

Large enterprises saw their PMI return to the expansion zone, while medium-sized companies improved but were still in contraction terrain. The situation remained lackluster for small firms.