(Yicai Global) April 1 -- China's manufacturing sector returned to growth in March, ending four months of weakening activity, according to a much-watched private survey.

The Caixin/Markit manufacturing purchasing managers' index rose 0.9 percentage point to 50.8 last month from February, Caixin Insight Group said today. That's the fastest pace of expansion in eight months. A number above 50 indicates expansion.

The results were in line with the official PMI released yesterday by the National Bureau of Statistics. The NBS said its index rose 1.3 point to 50.5 last month, also returning to positive territory as factories got back to work after the Chinese New Year holiday and lower taxes kicked in.

The sector recovered and the employment situation greatly improved in March because of a relaxed financing environment, national policy on bailing out private companies, and positive progress in China-US trade talks, said Zhong Zhengsheng, chairman and chief economist of CEBM Group, a unit of Caixin Insight Group.

The government has introduced a number of measures to support the economy including lower taxes and cuts to banks' required reserve ratio to spur lending.

Caixin's survey showed that growth in new domestic orders also rebounded, with the trend becoming more obvious despite a low growth rate. New export orders also began to rebound slightly. The total volume of new export orders was generally stable in the first quarter, and has already shaken off a downward trend from last year.

Employment in manufacturing picked up for the first time in more than five years last month with some manufacturers calling for more manpower to boost production amid an increasing backlog and new business.

Input costs rebounded slightly after falling for three straight months. Manufacturers hiked product prices due to steeper raw materials costs such as steel, non-ferrous metals and packaging materials, and passed on these higher costs to customers. They also raised product prices because of stronger demand.

The rate of contraction in procurement slowed as demand recovered. Manufacturers continued to cut back on purchases last month, but the pace of decline was the slowest in nearly three months. Producers used inventory, resulting in an ongoing drop in stocks of finished goods, but the rate of decline dropped significantly, and procurement inventory got its first expansion in the past four months.

Optimism returned to the highest level in 10 months in March, reflecting factors such as improved market conditions, new product launches, and capacity expansion. Many manufacturers expect overall market conditions to improve further, though confidence is still at a lower point than the long-term average.