China August retail sales and factory output beat expectations

In August, China's industrial output soared the fastest for up to five months as demand for products from coal to vehicles rebounded due to higher government spending as well as a year-long credit and property boom.

China's steel industry has grown in recent months as capacity drops as well as production curbs have bolstered prices and revenues, while a government infrastructure spree and also housing boom have driven demand for building materials from cement to steel.

August’s improvements suggest that China's third-quarter economic growth is actually holding up better than expected a couple of months ago and probably remains within the government's 2016 target range of about 6.5-7%, notwithstanding an alarming fall in private investment, leaving the Chinese economy more dependant on government spending.

Today's activity data happen to be in line with the positive trade data as well as inflation figures published the previous week. 

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