SHANGHAI — Chinese manufacturing accelerated in October with spending on infrastructure projects spurring a jump in new equipment orders even as export demand remained subdued, surveys showed yesterday.
The state-affiliated China Federation of Logistics and Purchasing said its purchasing managers index 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, it said.
China’s economic growth slowed to 9.6 percent in July-September over a year earlier, down from the previous quarter’s 10.3 percent. But the survey, an indicator of future trends, suggests the economy is on track for continued stable growth, the federation said in a notice on its website.
The improved manufacturing figures propelled Asian stock markets higher with the Shanghai Composite up 2 percent and South Korea’s Kospi ahead by 1. percent.
The federation said relatively robust readings for October showed strong growth in new orders for equipment, including transportation and general equipment, thanks to strong stimulus spending.