(Yicai Global) April 6 -- China’s service sector activity rebounded to a new high in 28 months, eking out the third straight month in expansion territory, as economic recovery continued to accelerate.

The Caixin purchasing managers’ index for services jumped by 2.8 points to 57.8 last month from February, according to data released by financial media group Caixin today. A level above 50 indicates expansion.

The Caixin China general PMI, which includes both manufacturing and services activity, added 0.3 points to reach 54.5, the quickest rate of expansion since June.

The trend is in line with the official services PMI, released by the National Bureau of Statistics on March 31. The gauge for services climbed 1.3 points to 56.9. The composite PMI output index, released by the NBS, edged up 0.6 points to as high as 57.

In March, the recovery of the service sector continued to accelerate, while the manufacturing sector lagged behind as the foundations for recovery are not yet solid and the growth momentum is weak, according to Wang Zhe, senior economist at Caixin's think tank. In the future, economic growth still depends on the boost of domestic demand, especially the improvement of household consumption, he added.

Looking closer at the ingredients of Caixin's service PMI, supply and demand were booming. Two sub-indexes of business activity and new orders moved deeper into positive territory and recorded new highs since December 2020. Service providers said that business conditions have improved after the Covid-19 restrictions were lifted and sales have increased.

Even the sub-index of employment reached the highest level since December 2020 as companies scrambled to fill positions to respond to the rising demand.

However, firms reported lower business confidence for the second straight month even though the level was still significantly higher than the long-term average. Entrepreneurs expected demand to grow and planned new projects as the shadow of the pandemic is fading.

Editor: Emmi Laine, Xiao Yi