China’s annual industrial production beats estimates in August, added to the latest evidence that the world’s second-largest economy may be on the road to recovery.
Beating market expectations
Factory production rose 10.4% from last year, beating market expectations with a figure closer to 9.9%.
Other data reported showed that retail sales and fixed asset investment also increased during the month.
China has been attempting to improve its economy after its growth rate slowed for two consecutive rows.
Li Huiyong, an economist at Shenyin & Wanguo Securities, said the recovering momentum of China’s economy is because of exports, investment, and consumption.
Improving global demand
The reported figures come just days after China reported a strong growth in exports during August period.
The export and manufacturing markets have been key drivers of China’s economic growth in recent years. A slowdown in demand from key markets such as Europe and US had hurt their growth recently, however.
“The recent improvement is largely because of better exports amidst improving global demand,” said Louis Kuijs, chief China economist with RBS in Hong Kong.
At the same time, Chinese officials have taken measures to help boost domestic demand in an attempt to balance the economy again.