China’s Economy Strengthened as Industrial Production and Retail Rises

China’s economy built up after July’s hurl as factory output, investment and retail sales all topped economist estimates, amid a boost from property that’s supplied to the concern that price gains may prove unsustainable.

Their industrial production rose 6.3 percent from a year earlier in August, compared with a median estimate of 6.2 percent in Bloomberg survey of economist. Along with their retail sales from 10.2 percent last July, it climbed 10.6 percent. Fixed asset investments also increased 8.1 percent in first eight months of the year.

“The production and investment data show that growth is stabilizing. They’re walking a thin line between enough stimuli to achieve 6.5 percent growth but not so much that risks build up alarmingly. If there is too much of a rebound they will take away the punch bowl,” said David Dollar, a senior at Brookings Institution in Washington and former U.S. Treasury attaché to Beijing.

Unexpectedly higher trade and the official factory gauge’s sudden rise into the highest level in almost two years is what helped shore up the confidence of the world’s second-largest economy. These were the reports that were added up to the recent data gathered.

However, the property market remains as a challenge as it has underpinned the recovery. It may face oppositions as the government signals that real estate price increases may be unsustainably high.