China's logistics sector showed a notable improvement in business activities last month, according to the China Federation of Logistics and Purchasing on Thursday.

The index tracking the country's logistics market was 51.5 percent in March, up 2.2 percentage points from the previous month and back to the expansion zone, data from the federation showed.

A rebound in market demand drove the improvement. Recovery of the supply chain accelerated at both upstream and downstream levels, and industrial demand was unleashed, the federation said.

Main sub-indices rose across the board last month, with certain sectors posting strong rebounds. Railway, water and air transport, and express delivery industries saw significant recoveries.

Data showed that China's logistics industry has maintained steady expansion, with its total social logistics value expanding 5.8 percent year on year to 360.6 trillion yuan (about 50.16 trillion U.S. dollars) last year.