BEIJING - The purchasing managers' index (PMI) for China's manufacturing sector came in at 50.5 in March, up from 49.2 in February, the National Bureau of Statistics (NBS) said Sunday.

A reading above 50 indicates expansion, while a reading below reflects contraction.

NBS senior statistician Zhao Qinghe attributed the monthly increase in the manufacturing PMI to accelerated production activities and improved domestic demand boosted by government supporting policies, including tax and fee cuts.

The sub-index for production, a major factor used in calculating PMI, rose to a six-month high at 52.7 in March, up 3.2 percentage points from February.

The sub-index for new orders went up 1 percentage point from February to 51.6 in March, the highest in half a year, showing growing momentum in market orders.

The PMI for high-tech manufacturing, equipment manufacturing and consumer goods manufacturing stood at 52, 51.2 and 51.4, respectively, all above the general manufacturing PMI, showing rising strength of new sources of growth.

Large companies saw the manufacturing PMI down 0.4 percentage points to 51.1, whereas the readings for medium-sized and small companies rose 3 and 4 percentage points, respectively.

China's non-manufacturing activities pick up in March

The purchasing managers' index (PMI) for China's non-manufacturing sector came in at 54.8 in March, up from 54.3 in February, the National Bureau of Statistics (NBS) said Sunday.

A reading above 50 indicates expansion, while a reading below reflects contraction.

The service sector recorded stable performance, with the sub-index measuring business activity in the industry standing at 53.6, up from 53.5 in February.

Indices for sectors including railway, telecom, banking and insurance all stood above 57, indicating robust business growth.

The sub-index for new orders in the service sector came in at 51.5, up from 50.5 in February, according to the NBS.

The construction sector recorded faster expansion, with the sub-index measuring business activity in the industry rising 2.5 percentage points to 61.7 in March.

The sub-index for new orders in the construction sector surged to 15-month high at 57.9, up from 52 in February.

China is trying to shift its economy toward a growth model that draws strength from consumption, services and innovation. The service sector accounted for 52.2 percent of the country's economy last year.