(Yicai) April 1 -- Activity in China’s manufacturing sector expanded for the first time in six months in March, as factories resumed production at a faster pace than expected after the Chinese New Year holiday.

The manufacturing purchasing managers’ index came in at 50.9 last month, up 1.7 percentage point from the previous one, according to data released by the National Bureau of Statistics yesterday. A reading above 50 indicates expansion. The PMI stayed in contraction territory between last October and February.

China’s PMI grew in March because the policy effect emerged, enterprises’ confidence increased, and the economic momentum strengthened, said Wen Tao, an analyst at the China Logistics Information Center. Moreover, commodity exports increased because the opening-up intensified and the global economy rebounded, especially in the Asia-Pacific region, he added.

The new orders and new export orders sub-indexes soared 4 points and 5 points to 53 and 51.3, respectively, in March from the previous month, as both domestic and overseas demand grew significantly. The latter had been in contraction territory for 11 straight months.

The sub-index for production rose 2.4 points to 52.2, and that for the employment inched up 0.6 point to 48.1 in the period.

The PMI for large enterprises grew 0.7 point to 51.1 last month from February, staying in expansion territory for the 10th month in a row. That for medium- and small-sized firms rose 1.5 point and 3.9 points to 50.6 and 50.3, respectively.

Fifteen of the 21 industries included in the PMI were in expansion territory in March, up from 5 the month before. The PMIs for the agricultural and sideline food processing, food, alcohol, beverage, and refined tea, transportation equipment, and electrical machinery and equipment manufacturing industries were above the mark of 60, as related enterprises were more optimistic about future development.

Editor: Futura Costaglione