A qualitative leap ... China is witnessing a recovery in industrial production and consolidating the recovery

China's industrial production accelerated at the most rapid pace in 8 months in August, while retail sales recorded growth for the first time this year, indicating that the economic recovery is gaining momentum as demand begins to improve on a wider scale from the Corona pandemic crisis.

The pace of an annual decline in fixed-asset investment has also slowed between January and August thanks to expanded stimulus from Beijing, but the authorities remain concerned about the outlook due to the increase in external risks, especially the tension between China and the United States.

The recovery in China is gaining momentum after the pandemic crippled the economy, as it strengthened with support from pent-up demand, government stimuli and unexpectedly strong exports. The pent-up, all this contributed to the strong activity data in August, "adding," We expect further recovery, albeit gradually, in the services sector, a rapid improvement in retail sales and a significant growth in fixed asset investments. "

Data from the Office for National Statistics on Tuesday revealed that industrial production growth accelerated to 5.6% in August year on year, the fastest pace in eight months.

Analysts polled by Reuters expected growth of 5.1% compared to 4.8% in July. Retail sales also beat analysts' expectations, achieving 0.5% year-on-year growth and halting a 7-month downturn and missing expectations of no growth.

In July, sales fell 1.1%, but consumer confidence increased recently due to spending on cars and tax-free shopping, and the data revealed that car sales increased by 11.8% in August year on year, while sales of telecom products jumped 25.1%. .

The decline in fixed asset investment slowed down, declining 0.3% between January and August on an annual basis, compared to expectations of a 0.4% decline and a larger 1.6% decline in the first seven months of the year.

As for primary commodities, China recorded record production in crude steel and aluminum last month thanks to recovering demand from the construction sector and a rebound in auto sales.