Some economists said the data could signal that China's manufacturers had overcome the worst of the economic crisis, with companies exhausting their old stock and placing new orders.

"Manufacturing in China is still contracting, but the bottom is now in sight," said Sherman Chan, an analyst with Moody's Economy.com.

The government's purchasing managers' index, or PMI, rose to 45.3 percent in January, up from 41.2 percent in December and a record low of 38.8 percent in November, the official Xinhua news agency reported.

A reading above 50 means the manufacturing economy is expanding, while a reading below 50 indicates an overall decline.

"The accelerated rise of manufacturing PMI undoubtedly points to a recovery in China," Merrill Lynch said in a research note.

However, Citigroup economist Ken Peng cautioned that talk of a recovery could be premature.

"Being 'less bad' is not the same as 'recovery'," Peng said.

Indeed, January's figure was the sixth consecutive month that the PMI was below 50 percent.

And a similar survey by CLSA Asia-Pacific Markets, a leading independent brokerage, released on Monday gave less optimistic results.

The CLSA China Purchasing Managers Index, stood at 42.2 in January, up only slightly from 41.2 in December.

The government's PMI is published by the National Bureau of Statistics in cooperation with the China Federation of Logistics and Purchasing.

It is based on surveys of more than 700 manufacturers for their views on 11 key indicators including new orders, employment, supply and inventory.

China's manufacturing sector accounts for more than 40 percent of the nation's economy.

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