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China's economy grew by slightly more than expected in the second quarter of the year as the government increased infrastructure spending.

Gross domestic product expanded by 6.7% in the three months to June compared to a year earlier, China's statistics bureau said.

The rate was steady from the previous quarter and above expectations of 6.6%.

Analysts said the data showed the world's second-biggest economy was likely stabilising.

Today's figures indicate China's economy is being kept stable through policy support, Daniel Martin from Capital Economics said.

"While China is almost certainly expanding at a slower rate than its GDP data suggest, rapid state sector investment does appear to have kept growth broadly stable last quarter."

"Growth is more likely to pick up over coming months than slow further, but a lasting turnaround is not on the cards."

Other monthly data released today including industrial output and retail sales also beat forecasts.

Industrial output grew by 6.2% compared to forecasts for 5.9% amid concerns about overcapacity. Retail sales rose by 10.6% beating forecasts for 10% growth.

However fixed asset investment missed expectations, growing by 9.0% from January to June compared to the same period a year earlier. Economist estimates was for growth of 9.4%.