BEIJING, April 1 -- Business activity in China's non-manufacturing sector expanded in March, reversing a downward trend since December, official data showed on Friday.

The purchasing managers' index (PMI) for the non-manufacturing sector stood at 53.8 in March, up from 52.7 in February and well above the 50 mark that separates expansion and contraction, according to a report released jointly by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing.

The non-manufacturing PMI tracks business activities of both the service sector and the construction industry.

The service sector sub-index was 53.1 in March, up 0.9 points from February, said the report.

The sub-index for service new orders picked up 2 points from one month earlier to 50.8 in March, suggesting improving demand in the non-manufacturing sector, NBS statistician Zhao Qinghe said.

The sub-index for construction activity rose 2.8 points to 58 in March, while that for new orders up 2.4 points to 50.5 due to strong demand.

Businesses related to retail, post, catering, real estate, brokerage and insurance posted sound growth in March.

However, the employment sub-index was 48.2, a decrease of 0.7 points from the previous month, indicating the employment at non-manufacturing enterprises continued to decrease.