New York ? Manufacturing activity picked up strongly in August for a second straight month, suggesting the fragile industrial sector is in the midst of a turnaround despite a bleak job picture.

The Institute for Supply Management reported Tuesday that its manufacturing index had risen to 54.7 last month from 51.8 in July. A reading above 50 indicates expansion, while one below 50 indicates that manufacturing activity is slowing.

The index in August was at its highest level since last December and was stronger than analysts had been expecting.