BEIJING, Aug. 31 -- 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.

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.

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.

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.

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.