THE Chinese economy is gaining momentum, with heavy industry breaking production records to supply a resurgent construction sector.

China's National Bureau of Statistics yesterday announced a slew of eye-popping production data for August, with total industrial production up 12.3 per cent from a year earlier.

Iron output rose 22 per cent over the year to 52.3 million tonnes, and cement production rose 24 per cent to 150 million tonnes.

Production of electricity rose 9 per cent from a year earlier and is now 25 per cent above the trough in January, after seasonal adjustment.

China also produced 657,000 cars, almost double the figure for August last year. Total vehicle production of 1.17 million keeps China on track to make more vehicles this year than the US.