China's industrial production reportedly rose by more than expected in August, signalling to a mending economy that had been facing slow growth for two quarters in a row.
The country's factory output climbed by 10.4 percent, from a year earlier and analysts had forecast a figure closer to 9.9 percent.
Economist Li Huiyong said that the figures showed the recovering momentum of China's economy is stronger than market expectations.
According to the BBC, the export and manufacturing sectors have been key drivers of China's economic growth in recent years. But a slowdown in demand from key markets such as the US and Europe had hurt their growth recently.
Chief China economist with RBS in Hong Kong, Louis Kuijs said that the recent improvement is largely because of better exports amidst improving global demand.
Analysts said the measures to boost domestic demand, which include the suspension of value-added tax and turnover tax for small businesses, had helped boost consumption at home and sustain a high growth rate.
Kuijs further said that the continued solid domestic demand growth provided an important cushion during the slowdown and remains important now, the report added.