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China's factory output shows economy growing

China's factory output expanded in August at its fastest rate this year in a new sign the world's second-largest economy is recovering from its deepest slump since the 2008 global crisis.

Industrial production rose 10.4%, accelerating from July's 9.7%, government data showed Tuesday.

The signs of economic revival will ease pressure on Chinese leaders who want to focus on longer-term structural reforms analysts say are needed to keep economic growth strong.

Economic growth declined to a two-decade low of 7.5% in the second quarter but trade, factory output, auto sales and other indicators suggest the slowdown is leveling out.

Communist leaders want to nurture more self-sustaining growth driven by domestic consumption instead of trade and investment. They responded to the unexpectedly sharp decline in growth this year with higher spending on railway construction and a small business tax cut, but have resisted pressure for a more ambitious stimulus.

Export growth accelerated to 7.2% in August from July's 5.1%.

Also in August, consumer inflation edged down to 2.6% from July's 2.7%. Wholesale prices that have declined steadily for more than a year fell less sharply in another sign of growing demand.