China’s factory expansion pace fastest in October
REUTERS/ Activity in China’s manufacturing sector expanded at the fastest pace in over two years in October, thanks to a construction boom. Smaller firms have grown more, suggesting the world’s secondlargest economy is stabilising and getting on a steadier footing. Signs of a more broader-based recovery will be welcomed by the government amid growing views that a housing rally may have peaked. Much of China’s better-than-expected growth this year has been highly reliant on spending by often inefficient state firms as private investment languished. The official Purchasing Managers’ Index stood at 51.2 in October, much stronger than September and the highest reading since July 2014. Economists had expected a far more modest of 50.4.