China's manufacturing sector set for strong Q4

China’s Ministry of Industry and Information Technology anticipates faster growth for the country’s factories in the fourth quarter compared to the third, Reuters reported. Zhu Hongren,  ministry spokesman and chief engineer, said in a press conference Thursday that successive monthly improvements in output, more optimistic private sector surveys and an increase in power use signal green shoots of recovery. However, in a statement released before the conference the ministry also said the sector faced challenges such as weak foreign demand, increasing costs and stringent finance terms. Li Yushi, senior researcher with the Commerce Ministry’s think-tank, expressed a similarly cautious but positive view Thursday, reported Reuters. Exports are likely to grow 6-7% in 2012, while growth next year will still be under 10% despite signs of recovery, Li said.