(Yicai) April 1 -- Activity in China’s manufacturing sector remained in positive territory for the fifth straight month in March, reaching the highest level since March last year, according to a widely watched private survey.

The Caixin manufacturing purchasing managers’ index came in at 51.1 last month, up 0.2 point from February, data released by financial media group Caixin showed today. A reading above 50 indicated expansion.

The official manufacturing PMI, published yesterday by the National Bureau of Statistics, soared 1.7 point to 50.8 in the period, bouncing back into positive territory for the first time since last October.

The Chinese economy is picking up overall, but the intense pressure on the job market, low prices, and insufficient demand have not yet improved, said Wang Zhe, senior economist at Caixin’s think tank. The growth-stabilizing policies began to show results at the beginning of the year, so China’s overall policy orientation should remain on the same line, Wang noted.

The manufacturing production and new export order sub-indexes jumped to the highest in 10 months and 12 months, respectively, in March because improved market conditions boosted demand and drove business growth.

With the pick-up of supply and demand, the contraction of the employment sub-index slowed down, remaining unchanged from January at the highest in the past seven months. Corporate restructuring and cost control led to the resignation of some employees, resulting in a decline in the scale of employment.

The purchasing price index of raw materials in the manufacturing industry fell below 50 for the first time in eight months in March. With declining costs and the fierce competition in the market, companies continued to cut prices and offer discounts. The manufacturing factory price index fell to the lowest in eight months.

The improvement in market demand led to increased confidence in the manufacturing market, with the production sub-index soaring to the highest since May last year in March.

Editor: Futura Costaglione