Surveys indicate rebound in Chinese manufacturing Yu Song, an economist at Goldman Sachs, said the October manufacturing surveys often rise because of seasonal factors, but added that factories had expressed growing confidence over production, new orders, inventories and employment, suggesting that the economic cycle may be turning positive again. Gree and Haier, two of China's largest white goods makers, both said they had upped their production in September, while steel production rose again in October and car sales were up 8pc in the first three weeks of the month. Chinese factories are still struggling with weak demand from Europe and the United States and while shipping volumes have been rising, the overall sentiment is still relatively gloomy. In the past, Chinese policymakers have increased tax rebates and depreciated the yuan in order to help exporters, but this year government tax revenues have been slowing and there is pressure on the yuan to remain stable for fear of speeding up any capital outflows. China's economy has slowed for seven straight quarters, and expanded at 7.4pc year-on-year in the third quarter. However, the government has refrained from any aggressive stimulus policy, with many local governments still struggling to pay back the loans they received in the wake of the financial crisis. A new consensus is emerging that the slowdown in the economy is structural and that annual growth of 7pc or 8pc growth would be acceptable over the next three years. The Chinese Academy of Social Science estimates 7.2pc annual growth until 2015 and then 6.1pc annual growth between 2016-2020.