The state of stress shown on this element is termed plane stress.
But, what do we mean when we call this situation plane stress? After all, it is obvious that the face is a different plane surface than the face. How can we say that all of the stresses acting on this element are in the same plane?
Note that the normal to the face of the stress element (i.e., the axis) lies in the -plane.
Likewise, the normal to the face (i.e., the axis) also lies in the -plane.