With the Chinese New Year holidays historically skewing the data show in January and February, March’s numbers are seen as a true indicator for the sector.
The preliminary reading of HSBC's Purchasing Managers Index rose to 51.7, from 50.4 in February. The PMI is a key indicator of the activity in the sector and a reading above 50 shows expansion.
Qu Hongbin, chief economist for China at HSBC said the rebound in the sector was fuelled by "stronger new orders and production growth, implying that the Chinese economy is still on track for gradual growth recovery.”
This data is the most recent sign that the world's second-largest economy may be rebounding from a recent slump. Data released earlier this month, showed that China's exports jumped 21.8 percent from a year earlier, boosted by strong demand from the US and South East Asia.
