A stronger-than-expected rebound in China’s exports in October added to a run of indicators suggesting the world’s second-largest economy has found its footing just as Beijing prepares to lay out its reform agenda for the next decade.

Improving demand from the US and Europe lifted exports and helped reinforce the view that China has regained some momentum since mid-year after a protracted slowdown.

“China’s export numbers suggest some – although not yet decisive – improvement in global demand momentum,” said Louis Kuijs, an economist with RBS, in a note.

Exports increased 5.6 per cent in October from a year earlier, the Customs Administration said on Friday, handily beating market expectations for a 3.2 per cent rise and recovering from a 0.3 per cent fall in September.

China’s leaders have repeatedly said they are reshaping the economy so it is driven by domestic demand rather than exports and investment, and that slower growth is acceptable while they push on with their reforms.

A Reuters poll shows inflation is expected to have risen to an 18-month high in October, retail sales and M2 money supply growth rates are seen edging up slightly, while investment and factory output tick down. Exports have been a drag on the economy so far this year, subtracting 1.7 per cent from growth in the first three quarters.

Weak global demand, a stronger yuan currency and rising labour costs have taken their toll on sales of Chinese goods abroad, but there are hopes of a sustained pick-up in global demand.

October’s rebound was driven by the US, China’s largest trading partner, and a sharp turnaround in demand from the EU where export growth jumped to 12.7 per cent after a one per cent contraction in September.