Manufacturers offered evidence of sustained recovery in China and signs of stability in Europe on Tuesday, indicating a global upturn from the worst recession since World War Two is taking hold. But despite the positive signs from China, which some politicians hope will power the recovery by maintaining its appetite for imports, performance remains patchy. Analysts say recovery could falter if governments wind up stimulus packages, aimed at spurring lending to companies and sales of goods, too soon. Data for European August car sales have shown a boost from incentive schemes giving drivers cash bonuses for trading in old cars for newer, less polluting models. French new passenger car sales rose 7 percent in August to 110,607 units, carmakers' association CCFA said. Sales of light utility vehicles, which are not eligible for payouts, plunged. Spanish sales were flat, automakers' association ANFAC said. Companies in Europe and the United States have largely reported better than expected results recently, suggesting that the recession has largely eased The banking sector, where the crisis began when a boom in high-risk debt went sour, has mostly recovered, but several leaders have suggested they rein in bonuses and plan to raise the issue at the Sept. 4-5 meeting of G20 leading developed and emerging nations. German Chancellor Angela Merkel said lending conditions would have to tighten once the crisis was over. 'The money supply will have to be reduced,' she told Bayerische Rundfunk radio. She said 'exit strategies' should be implemented when the economy has regained the levels it saw before the crisis.