(Yicai) April 3 -- Activity in China's services sector expanded at the fastest pace in three months in March, according to a widely-followed private survey.

The Caixin services purchasing managers' index, which polls small and private businesses, rose to 51.9 last month from 51.4 in February, data released by financial media group Caixin showed today. The index has remained above the boom-bust line of 50 for 26 consecutive months.

In comparison, the non-manufacturing PMI published by the National Bureau of Statistics, which focuses on large, state-owned enterprises, inched up to 50.8 fro March from 50.4, with the business activity index for services rising to 50.3 from 50.

“Supply and demand expanded at a faster pace than in February as the market continued to improve,” Wang Zhe, senior economist at Caixin Insight Group, said in a press release.

“Business activity and total new orders grew for the 27th month in a row, with both gauges hitting new highs for this year,” Wang said. “External demand remained steady as the measure for new export orders stood at 50.”

New orders grew at the fastest pace in three months, aided by supportive domestic policies, marketing efforts, and a broad improvement in demand conditions, according to Caixin.

Business sentiment remained generally upbeat though moderated from February on concerns for the global economic and geopolitical outlook. The companies surveyed expressed hope that supportive policies and business development efforts will boost sales and output over the coming 12 months.

“Employment was sluggish," Wang pointed out. “Businesses took a cautious approach to hiring as they worked to reduce costs, dragging the corresponding gauge into negative territory.”

The Caixin manufacturing PMI came in at 51.2 for March, up from 50.8, Caixin revealed on April 1. As a result, the Caixin composite PMI rose to 51.8 from 51.5, the highest in the past four months and remaining in expansion territory for the 17th straight month.

"Supply and demand improved across sectors, with manufacturing experiencing strong foreign demand," according to Wang. "But prices remained weak, with sales prices particularly subdued.

“The job market in manufacturing improved slightly, but employment in its services counterpart was a drag,” he said.

"The government has made boosting consumption the top priority of its economic work this year," Wang said. "That means policy efforts should focus on stabilizing employment, alleviating households' financial burdens, and increasing their disposable income.

"Stabilizing the stock and real estate markets while enhancing asset income for households is also essential for spurring consumption," he added.

"In 2025, as the external environment becomes increasingly severe and complex, China's macroeconomic policies need to be more proactive and decisive, with measures implemented as soon as possible to support a sustained economic recovery," Wang suggested.

Editor: Futura Costaglione