China’s manufacturing sector continued to expand for the third straight month in May, according to the country’s official purchasing managers’ index, a sign that the government’s stimulus package is starting to have an impact and that the recovery is likely to broaden.

The China Federation of Logistics and Purchasing on Monday said the index pulled back slightly to 53.1 in May from 53.3 a month earlier. A reading above 50 signals an expansion while one below the threshold reflects a contraction.