The index for June's new orders edged up 0.2 percentage points from a month earlier to 50.3 percent, while the figure for new export orders crossed the demarcation line by gaining 1.3 percentage points to 50.4 percent.

However, Cai said demand in the real estate market remained weak, with its new orders index remaining below 50 percent for three consecutive months.

The CFLP also warned of a trend of rising costs for the non-manufacturing sector. The sub-index for intermediate input prices continued to rise in June, up 0.6 percentage points to 55.0 percent.

China's non-manufacturing PMI is based on a survey of about 1,200 companies in 27 industries.

On Monday, the CFLP released the manufacturing sector's PMI, which fell to 50.1 percent in June from 50.8 percent in May.

But PMIs for both manufacturing and non-manufacturing sectors have stayed above the boom-bust line of 50 percent for the entire second quarter, reflecting a continuous steady growth in the world's second largest economy, said Cai.