The factories of China increased their production in the last month and got thrusted up by a flow of new businesses. It pointed out two things, firstly the strength of the second-biggest economy of the world and secondly the price pressure it is under.

Both the two surveys done on the manufacturing sector leaped to a six-month high in the month of October. Both the surveys were done for indicating the conditions of the broad range of industries earlier.

The official purchasing managers’ index (PMI) went up to reach fifty four decimal seven in the month of October from fifty three decimal eight of September surpassing all expectations. Another PMI of HSBC went up to fifty four decimal eight from fifty two decimal nine.

With the traditional survey tumbling in the month of October as the factory production slumped for the National Day holiday all through the week, the increasing figures were all the more inspiring.

Yu Song and Helen Qiao, both economists from Goldman Sachs said in a note to their clients that in spite of the seasonal bias the PMI went up which indicated that real activity growth in the month of October was exceedingly strong.

Due to strong PMI the Asian stocks got lifted up. The main index in the city of Shanghai rose to one decimal nine percent in the morning session. PMI were stronger in China for four months in a row, moreover this factor along with other positive signs pointed that China’s economy is accelerating.

The speed with which the country’s economy is moving gave confidence to its government to increase the rates of interests on 19, October. China hiked its rate of interest for the first time in the last three years. According to some economists China can increase rates of interest once more within the end of this year.