The closely watched manufacturing Purchasing Managers' Index (PMI) came in at 50.8, just above the 50 mark that separates expansion and contraction, but down from the previous month and slightly short of expectations.
Still it is a significant improvement on the record low 35.7 posted in February, when major cities were forced to shut down to prevent the disease's spread.
Zhao Qinghe, senior statistician at the National Bureau of Statistics which released the data, said demand was recovering at a slower pace than production, in industries including textiles and chemical raw materials. "The spread of the pandemic is accelerating overseas, and global economic activity has contracted sharply," he said.