(Yicai Global) Aug. 31 -- China's composite purchasing manager index output index, manufacturing PMI index and non-manufacturing business activity index were all above the threshold of 50 for the sixth straight month, suggesting the Chinese economy's steady recovery and improvement, according to data the National Bureau of Statistics released today.

China's manufacturing PMI dipped 0.1of a percentage point from July to 51 percent this month, with the PMI among small businesses falling 0.9 of a percentage point from last month at 47.7 percent, still below the 50 threshold. Over half of small businesses surveyed said market demand is insufficient and more than 40 percent said they were under a tight budget, indicating they still face many hardships in production and operation.

Businesses in the Southwest Chinese megacity of Chongqing and surrounding Sichuan province suffered heavy rains and floods that prolonged the raw material procurement cycle and cut market orders, thus hitting their business production.

The non-manufacturing business activity index was up 1 percentage point at 55.2 percent this month, suggesting continuously improving momentum in the non-manufacturing sector’s recovery. The service sector's rebound also sped up, with its business activity index up 1.2 percentage points from July at 54.3 percent.

The construction industry's business activity index fell slightly, down 0.3 of a percentage point from July at 60.2 percent. The steady progress of infrastructure construction and easing high temperatures and rainfall prompt forecasts of swift and sustained growth of construction in the near future, however.

The composite PMI output index was 54.5 percent in August, up 0.4 of a percentage point from July, with the manufacturing production index and non-manufacturing business activity index -- two sub-indexes -- down and up from July at 53.5 percent and 55.2 percent, respectively.

Editor: Ben Armour