China's non-manufacturing sector grew in March, with the index for construction business activity reaching a one-year high, [Hong Kong company registration]according to figures issued on Wednesday.

The purchasing managers index (PMI) for the non-manufacturing sector stood at 55.6 percent in March, up 1.1 percentage points from the previous month, the National Bureau of Statistics (NBS) said in an online statement.

A PMI reading above 50 percent indicates expansion, while a reading below 50 percent indicates contraction.

The growth in business activity and orders indicates strong growth momentum, said Cai Jin, vice chairman of the China Federation of Logistics and Purchasing (CFLP), in an online statement.

The sub-index for construction business activity stood at 62.5 percent, setting a new high since last March and indicating a strong rebound in the sector, Cai said.

The sub-index for new orders gained 0.2 percentage points from a month earlier to 52 percent. In that category, the index for new orders for the construction sector rose 54.4 percent.[Set Up Company Hong Kong]

The sub-index for new export orders saw a slight climb of 0.1 percentage point to 51.7 percent. In the sub-index, new export orders for the construction sector stood at 57.7 percent.

The sub-index for intermediate input prices lost 0.9 percentage points to 55.3 percent. The sub-index for employment dropped 1.5 percentage points month on month to 50.4 percent. The sub-index for business outlook declined 0.3 percentage points from a month earlier.

The figures followed Monday's release of the manufacturing sector's PMI, which put the index at 50.9 percent, a sign of steady growth in economy.[Hong Kong Company Formation]

The non-manufacturing PMI is based on a survey of about 1,200 companies in 27 industries, including transportation, real estate, catering and software development.