(Yicai) April 3 -- Activity in China's service sector accelerated recovery last month, remaining in the expansion zone for the 15th straight month, as orders increased at home and abroad.

The Caixin services purchasing managers' index rose to 52.7 in March, up by 0.2 percentage points from February, data released by financial media group Caixin showed today. A level above 50 indicates expansion.

The Caixin composite PMI, which combines manufacturing with services, also edged up to 52.7, rising from February's 52.5 and a logging record high since last June. The peak is consistent with the official PMI. The official gauge is compiled by the National Bureau of Statistics and survey 3,200 firms, most state-owned, whereas the Caixin PMIs track 650 businesses that are generally smaller and privately owned.

The stats bureau said that the sub-index for the service sector climbed to 52.4 last month, up from 51 and a record high since last June. The composite output PMI rose by 1.8 percentage points to 52.7, indicating accelerating production and operations.

Last month, Caixin's sub-index for new orders remained above the threshold of 50 for the 15th straight month. A corresponding index for new export orders stayed above 50 for the seventh consecutive month, hitting a new high since last July.

However, service providers did not hire more staff as the sub-index for employment remained in contraction territory for the second straight month despite narrowing the pace of falling. Still, entrepreneurs remain optimistic about business this year as the sub-index for business expectations was in the expansion zone even though moving lower than the historic average.

The expansion of supply and demand across manufacturing and service sectors widened slightly last month, said Wang Zhe, senior analyst at Caixin’s think tank. Exports rebounded and the market was optimistic. However, internal and external demand still needs to be further boosted as the economy and the job market grapple with huge downward pressures, Wang added.

China should keep a continuous and consistent direction in policy, Wang said, adding that the stabilizing policies implemented early this year are gradually taking effect.

Editor: Emmi Laine