(Yicai Global) Aug. 31 -- The purchasing managers’ index for China’s manufacturing sector edged up this month from July as the country’s factory activity rebounds but remained below the threshold of 50, indicating contraction, for the second straight month, according to the latest data.

The PMI for manufacturing gained 0.4 percentage point in August from last month to 49.4, according to figures released by the National Bureau of Statistics today.

The PMI for the consumer goods industry climbed 0.9 percentage point to 52.3 as pro-consumption measures come into force, said Zhao Qinghe, senior statistician at the NBS’ Service Industry Survey Center. A reading above 50 indicates expansion.

Both the new orders and employment sub-indexes improved as factories became busier, with the former advancing 0.7 percentage point to 49.2 and the latter gaining 0.3 percentage point to 48.9.

Big companies fared the best, with their PMI climbing 0.7 percentage point to 50.5, returning to expansion territory. That of medium-sized enterprises gained 0.4 percentage point to 48.9 while that of small firms dipped 0.3 percentage point to 47.6.

The business activity index for the non-manufacturing sector slid 1.2 percentage point to 52.6, ending three months of recovery.

The civil engineering sector did particularly well with its business activity index standing at 57.1, its new order index at 55.5 and its business expectations index at 64.1, Zhao said. This shows that an increasing number of infrastructure projects are coming on the market.

The business activity indexes in hospitality, catering, telecommunications, radio & television, satellite transmission and financial services were all above 55. But those of the real estate, leasing and commercial services remained in negative territory.

Editor: Kim Taylor