China's purchasing managers' index, which is a key indicator of non-manufacturing industries, has risen to 55.5 in October from 53.7 the previous month, according to the latest figures released by the government.

The National Bureau of Statistics and China Federation of Logistics and Purchasing said in Beijing showed that the index improved to 55.5 in October amid signs that the world's second-biggest economy s beginning to recover following a slowdown.

The new figures will led to expectations of a strong recovery after similar indicators for manufacturing also showed signs of improvement in the Chinese economy. The increase will also reduce demands for more stimulus from the government, which is going through a once in a decade transition of the governing party.

Experts say that the authorities in China are looking to keep liquidity adequate and that monetary policy of the country is accommodative. The Shanghai Composite Index, which is the key benchmark stock index for the country, rose about 2.5 per cent in the previous five days on sings of an improvement in the economic growth in the country.

The People's Bank of China had recently said that measures relating to macro-economic policies and structural reform are taking effect and the economy is expected to record steady and relatively rapid growth.