Hopes of a global recovery have increased following the news that China’s economic slump may be over. Global confidence had rebounded earlier this week after the recovery in the American housing market.

While China’s growth during the third quarter of 2012 at 7.4% was lower than the previous quarter’s figure of 7.6%, the decline in growth was much slower than those experienced during earlier quarters.

Economists believe three other economic indicators provide cause for optimism. For instance, some view the figure of 2.2% for quarter on quarter growth as a sign of recovery.

The markets jumped following this news as in Hong Kong the Hang Seng stock index rose 0.7% and, in Shanghai, shares increased by 1.2%.

Dariusz Kowalczyk, senior economist as Credit Agricole-CIB, said in a research note: "Clearly, concerns over continued slowdown can now be put to rest."

The latest figures from the National Bureau of Statistics of China show that industrial production and consumer spending increased during the last quarter.

The statistics show that China’s retail sales rose 14.4% in the third quarter, an increase on the first half's 14.1% growth. Similarly, investment in factories and other fixed assets improved, rising 20.5% in the first nine months of the year, up from a 20.2% rate for the first eight months.

In other news China’s currency, the Yuan, hit a record high. The development has been linked to the US presidential elections with Reuters reporting that some analysts view it as a political move by the Chinese government.

It is thought that the Chinese government have allowed the Yuan to increase in value as a way to support Mr Obama’s campaign following Mr Romney’s comments that, if voted into office, he would label the Chinese as currency manipulators.