Industrial output rebounds in May

China's factory output growth rebounded more than expected in May alongside stronger expansion in credit and consumer spending, bolstering evidence that the world's third-largest economy is on the path to recovery.

The figures, which round out a batch of monthly data that has mostly surprised on the upside, suggest that the government's huge stimulus spending and tax breaks to encourage purchases of everything from cars to home appliances are helping to offset continued weakness in exports.

The acceleration in annual industrial production growth, to an eight-month high of 8.9 percent from 7.3 percent in April, beat economists' forecasts of 7.5 percent.