New China data boosts recovery hopes

China’s industrial output and retail sales rose in November, the latest in a series of signs indicating a recovery in the world’s second largest economy.

Factory output rose 10% from a year ago and retail sales were up 13.7%. This follows a stronger than expected jump in exports in November.

Data released on Tuesday also showed a jump in Fixed Asset Investment.

China’s economy has shown signs it is picking up pace after its growth rate slowed in first half of the year.

Its economy grew 7.8% in the three months to September from a year earlier, up from the 7.5% expansion recorded for the previous three months.

The improvement up has been fuelled in part by a recovery in demand for Chinese exports from key markets such as the US and European Union.

Data released over the weekend showed that China exports, a key component of its economy, rose 12.7% in November from a year ago.

At the same time, the Chinese government has also announced various stimulus measures over the past few months to help spur growth.

These include tax breaks for small businesses and reduced fees for exporters.

Analysts said these factors were helping to fuel a recovery in the Chinese economy.