An employee works at a factory in Dingjiang township of Lingchuan county, South China's Guangxi Zhuang autonomous region, May 19, 2023. (PHOTO / XINHUA)

BEIJING - China's manufacturing sector witnessed an improved business climate in August as a key indicator went up for a third straight month, official data showed Thursday.

Among the 21 surveyed industries, 12 reported expansion in August, up from 10 a month earlier

The purchasing managers' index (PMI) for China's manufacturing sector came in at 49.7 in August, up from 49.3 in July, according to the National Bureau of Statistics (NBS). A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

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Among the 21 surveyed industries, 12 reported expansion in August, up from 10 a month earlier. There was an overall improvement in the manufacturing climate, NBS statistician Zhao Qinghe said.

Non-manufacturing PMI at 51

Thursday's data also revealed that non-manufacturing PMI -- 51 in August -- had stood well above the boom-or-bust line for eight consecutive months, which indicated robust activities in the service and construction industries.

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China's composite PMI stood at 51.3 in August, signaling that overall production at manufacturing and non-manufacturing enterprises continued to expand, Zhao said.