The Caixin China General Services Purchasing Managers' Index (PMI), an indicator of business activity in China's service sector, rose to an 11-month high of 52.7 in June.
The reading, released on Tuesday after research by financial information service provider Markit sponsored by Caixin Media, was up from 51.2 in May and at its highest point since last July, when the index came in at 53.8.
A reading above 50 indicates expansion, while a reading below 50 represents contraction.
Service sector activity growth rebounded due to increased new work. The survey found new business orders rose to their highest level since last August.
In terms of employment, service providers continued to adopt a cautious approach towards hiring staff, raising their workforce numbers only slightly for a third month in a row.
Unlike manufacturers, who saw easing cost burdens, service providers reported greater cost pressures in June, with the average input prices rising at the fastest rate in four months. That led them to increase their charges to customers for a third straight month.
The Caixin China General Services PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in over 400 companies.
Earlier in July, the official PMI for China's service sector came in at 52.2 for June, up from 52 in May.
