(Yicai) Dec. 1 -- Activity in China’s manufacturing sector returned to positive territory last month to reach the highest level since September indicating that the country’s macro-economy is on the rebound, according to a widely watched private survey.

The Caixin manufacturing purchasing managers’ index came in at 50.7 in November, a gain of 1.2 percentage point from the previous month, data released by financial media group Caixin showed today. A reading above 50 indicates expansion and one below demonstrates contraction.

The data differs from the official manufacturing PMI, published yesterday by the National Bureau of Statistics, which logged a 0.1 percentage point dip from October to remain in contraction territory.

The macroeconomy is recovering and on an upward track, said Wang Zhe, a senior economist at Caixin Insight Group. However, due to the impact of a number of adverse factors, the foundation for economic recovery need to be further consolidated.

Looking into the future, policies should still focus on expanding consumption, increasing income levels, enabling employment as well as stabilizing expectations, Wang said. The country should consolidate foundations for the economy’s long-term growth and foster the long-term confidence of market entities, he added.

The production sub-index stayed above the 50 benchmark for the third time in the last four months as demand increased. The new orders sub-index reached the highest level since July and has been in expansion territory for four straight months.

But the new export orders sub-index remained below 50 in contraction territory for the fifth month running as overseas demand stays weak.

Prices remained stable. The purchase price sub-index narrowed to the lowest since September. And the ex-factory price sub-index dipped slightly to just under 50 due to the pressures of sales and inventory clearance.

Manufacturers remain cautious about recruitment and the employment sub-index stayed in negative territory and has been below 50 in eight of the past nine months. But there was an uptick in optimism and the production and operations expectations sub-index climbed to a four-month high. However, those polled did say they remain worried about the global economic prospects for the coming year.

Editor: Kim Taylor