BEIJING (Reuters) - Activity in China's factory sector unexpectedly picked up in March but remained weak, an official survey showed, reinforcing signs of persistent sluggishness in the economy which may need further policy support.
The official Purchasing Managers' Index (PMI), released by the National Bureau of Statistics on Wednesday, edged up to 50.1 in March from February's 49.9, stronger than 49.7 percent predicted by analysts in a Reuters poll.
A reading above 50 points indicate an expansion in activity while one below that shows a contraction on a monthly basis.
Other data so far this year have indicated that the economy has lost momentum despite two interest rate cuts since November, a reduction in the amount of money banks must keep in reserve and repeated attempts by the central bank to reduce financing costs.
The flash HSBC/Markit PMI released last week showed factory activity unexpectedly dipped to a 11-month low in March as new orders shrank, pointing to persistent weakness in the world's second-largest economy.
Weighed down by a property downturn, factory overcapacity and high levels of local debt, China's economic growth is expected to slow to a quarter-century low of around 7 percent this year from 7.4 percent in 2014.
Some economists expect first-quarter economic growth to dip below 7 percent, which could be weakest since the first quarter of 2009, when growth slowed sharply to 6.6 percent.
(Reporting by Kevin Yao; Editing by Kim Coghill)