BEIJING, Sept. 1 (Xinhua) -- Activity in China's manufacturing sector expanded in August due to a recovery in market demand and a rebound in production, official data showed Thursday.

The purchasing managers' index (PMI) came in at 50.4 in August, rising from 49.9 in July and beating the market expectation of 49.8, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing.

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

NBS statistician Zhao Qinghe said both production and demand picked up in August.

The sub-index measuring production stood at 52.6, up 0.5 percentage points from July and also the highest level since the start of the year.

The sub-index for new orders settled at 51.3, 0.9 percentage points higher than the previous month.