BEIJING: Factory activity in China picked up in March, official data showed, as the country's economic recovery broadened after the Lunar New Year holiday.

The Purchasing Managers' Index (PMI), a key gauge of manufacturing activit,y grew more than expected to 51.9 -- from 50.6 in February -- according to the National Bureau of Statistics, with production accelerating after the holiday lull and major economies abroad recovering from coronavirus slowdowns as well.

Non-manufacturing PMI made a significant rebound to 56.3, higher than the Bloomberg forecast of 52.0 and pointing to better performance in service industries and higher expectations for hard-hit sectors such as accommodation.

NBS senior statistician Zhao Qinghe said that with China's control of the Covid-19 outbreak, consumer demand returned and "the service industry accelerated its recovery".

For manufacturing, Zhao added that companies -- including smaller ones -- have done better as well, although there have been some delays in imported raw materials due to the Covid-19 spread abroad, leading to higher prices and longer delivery times.