Fixed-asset investment spurs China's recovery (2)

Lu Zhengwei, chief economist at Industrial Bank, was a bit less optimistic but was also upbeat about the recovery.

"It's safe to say the worst time of this round of economic downturn has passed," Lu said, adding the country's fixed-asset investment will increase 20.3 percent in October and retail sales may gain 13.7 percent.

In the past two months, the National Development and Reform Commission has approved a batch of new projects, including 25 metro lines and 24 airports -- either new projects or expansion projects involving 900 billion yuan (US$144 billion).

"Although cold weather may delay some projects, the performance of their suppliers can still be boosted by an increase in new orders," Lu said.

There have been some signs already. The official Purchasing Managers' Index, which measures operating conditions at mainly state-owned industrial enterprises, returned to 50.2 in October, up from 49.8 in September and 49.2 in August. It was the first expansion in three months.

The non-manufacturing PMI, a gauge of performance in service companies, rose 1.8 points from a month earlier to 55.5 in October.

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