Analysts polled by Reuters had expected the official PMI to come in at 45 for the month of March.
In February, the official PMI hit a record low of 35.7.
PMI readings above 50 indicate expansion, while those below that level signal contraction.
China’s National Bureau of Statistics said in its announcement of the PMI reading that there was continued improvement in the prevention and control of the outbreak in March, with a significant acceleration in the resumption of production.
Sub-indices for production, new orders and employment expanded, the bureau said.
In March, the situation of epidemic prevention and control in China continued to improve, the order of production and living was steadily restored, and the resumption of production and production of enterprises accelerated significantly.
Earlier this year, manufacturing activity slowed dramatically in China as the government instituted large-scale lockdowns and quarantines to contain the spread of the coronavirus disease, formally known as COVID-19.
On Monday, China’s Ministry of Industry and Information Technology said that as of March 28, the resumption of work rate for industrial enterprises was 98.6%, and the return of workers stood at 89.9%.
A private PMI survey by Caixin and IHS Markit will be released on Wednesday.
The Caixin/Markit survey features a bigger mix of small- and medium-sized firms. In comparison, the official PMI survey typically polls a large proportion of big businesses and state-owned companies.
— CNBC’s Evelyn Cheng contributed to this report.
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