The March reading jumped to a two-month high of 51.7 from 50.4 in February.
Economists were expecting a reading of 50.8.
Any reading above 50 signals growth in the sector.
This comes after a wave of weak economic data forced economists to lower their forecasts for China's GDP growth.
Here's a break down of the report:
Markit |
From HSBC's Hongbin Qu:
“March flash manufacturing PMI rebounded to 51.7 on the back of stronger new orders and production growth. This implies that the Chinese economy is still on track for gradual growth recovery. Inflation remains well behaved, leaving room for Beijing to keep policy relatively accommodative in a bid to sustain growth recovery.”