Chinese manufacture a success story

Chinese manufacturing surged ahead last month, with spending on infrastructure projects spurring a jump in new equipment orders even as export demand remained subdued, figures yesterday showed.

The state-affiliated China Federation of Logistics and Purchasing said its purchasing managers index, or PMI, rose to 54.7 in October from 53.8 September and 51.7 in August. Monthly readings have stayed above 50, the benchmark for expansion, for 20 straight months.

China's economic growth slowed to 9.6 per cent between July and September compared with a year earlier. The third-quarter figure was also down from growth in the previous three months of 10.3 per cent. But the federation insisted that the PMI, an indicator of future trends, suggested the economy is on track for continued stable growth.