China's factory activity expanded modestly for a second straight month in March, an official survey showed on Monday, adding to a string of recent indicators pointing to continued recovery for the world's second-largest economy.

Data from the National Bureau of Statistics showed that China's official purchasing managers' index for the manufacturing sector rose to 50.5 in March - a 12-month high - from 50.2 in February, above the 50-mark separating expansion from contraction.

Zhao Qinghe, an NBS statistician, attributed the rise in manufacturing PMI to factors such as the fading impact of the Spring Festival holiday and the accelerating business activity, stating that "China's overall economic output continued to expand in March".

The sub-index for production was 52.6 in March versus 52.5 in February, while the gauge for new orders came in at 51.8 in March, up from 51.1 in February, with industries such as railway, shipbuilding, aerospace equipment as well as computer, telecommunications, and electronic equipment witnessing the two sub-indexes standing above 55 this month.

NBS data showed manufacturers expressing optimism and confidence with the gauge for manufacturers' expectations for production and operation standing at 53.8 in March.

China's nonmanufacturing PMI, which includes sub-indexes for activity in the service and construction sectors, came in at 50.8 in March from 50.4 in February. Meanwhile, the country's official composite PMI, which encompasses both manufacturing and nonmanufacturing activities, came in at 51.4 in March, up from 51.1 in February.