The Chinese non-manufacturing industry developed faster in August, contributing to stabilize the economy and indicating that the investment stimulus policies are gradually taking effect.

The Purchase Management Index for the non-manufacturing sector increased to 56.3 last month from July's 55.6 level, compared with 56.7 in June, the National Bureau of Statistics and the China Federation of Logistics and Purchasing said on Monday.

"Non-manufacturing businesses are playing a more important role in stabilizing the whole economy," said Cai Jin, vice-chairman of the federation. "The significant rebound of the consumer service industry, including the retail and catering sectors, is laying a solid foundation for economic growth."

The index for the construction industry has grown to 61.1, 0.7 points higher than in July.

The two-month consecutive expansion of the construction industry shows that the ongoing investment stimulus policies are taking effect, Cai said.

The non-manufacturing PMI survey covers 1,200 companies from 27 sectors. A reading above 50 means expansion, while one below 50 indicates contraction.