China’s economy showed fresh signs on Friday that its recovery was gathering pace, with data showing that investment, industrial output and credit all expanded more rapidly in August, although the government still believes it is too soon to begin tightening policy.

Increases in output and investment both beat analysts’ forecasts and followed a series of figures in July that suggested the recovery might be weakening. The one exception was on the trade front, where the decline in exports and imports compared with the year before was sharper than expected.