Chinese industries enjoyed enormous growth in the month of August due to an increase in government spending as well as growth in the credit and the real estate sector.

China's steel industry benefited most from the increased government spending on infrastructure as the demand for building equipment ranging from iron beams to cement rose.

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This rise is contrary to analysts' prediction that a reduced spending rate by private firms was a great cause of worry for the world's second economic power.

"It is very clear that the data is improving because of the market. This is not sustainable," said Commerzbank economist Zhou Hao. "It is a good time for China to deliver on structural reform, especially on the SOE side to restore the confidence in the economy."

In his address, Zhao was referring to an overdue promise that authorities made to revamp the abnormal and less active state-owned enterprises.

August showed that indeed the government's 6.5-7 percent target range is achievable as the country ended the third quarter of the year.

This was confirmed after the Industrial output rose to 6.3 percent in August, contrary to analysts' prediction of 6.1 percent, according to a report published by the National Bureau of Statistics on Tuesday.

After a steady rise since the year began, China's steel industry increased by 3 percent in August.

China's retail sector also experienced surprising growth after registering a 10.6 percent rise from 10.2 percent in July.

With the tax cut expiry due at the end of the year, car sales were relatively high with buyers rushing to acquire new vehicles and propping the car sector to a 42-month high in August.

Fixed asset investment remained at 8.1 percent, which is better than expected.

Tagschina, China's National Bureau of Statistics, China steel industry, China Industry