(Yicai) Aug. 31 -- Activity in China's manufacturing sector rose for the third month in a row in August, though the official gauge remained in contraction territory for a fifth straight month.

The manufacturing purchasing managers' index was 49.7 this month, up from 49.3 in July, data from the National Bureau of Statistics showed today. The figure was 49 in June, 48.8 in May, and 49.2 in April. Fifty is the dividing line between contraction and expansion.

The individual PMIs for 12 of the 21 surveyed industries were higher than a month earlier, indicating an upswing, according to the NBS.

The new orders sub-index came in at 50.2, up from 49.5 in July, expanding again after four months, while the new export sub-orders index snapped a five-month contraction.

The production index stood at 51.9, rising from 50.2 the previous month. The production and operation expectations index was 55.6, up 0.5 point, to stay above 55 for the second month in a row.

The data show that enterprises have become more confident in the market’s development with the recent intensive introduction of a series of economic policies and measures, said Zhao Qinghe, a senior NBS statistician.

But insufficient market demand remains the main problem for firms, and the basis for restoring the development of the manufacturing industry needs to be further consolidated, Zhao added.

The business activity index for the non-manufacturing sector fell to 51 in August from 51.5 in July, the NBS data also showed. That for the construction industry jumped to 53.8 from 51.2, but the one for the service sector dropped 1 point to 50.5.

The service business operation expectations sub-index stood at 57.8, and the construction business activity expectations sub-index was 60.3, both coming in at a high expansionary range, showing that firms have robust confidence in the market’s recent development, Zhao said.

China's comprehensive PMI output index rose 0.2 point to 51.3, according to the figures. This shows that overall production and business activities have expanded stably, Zhao noted.

Editor: Martin Kadiev