But it depends on external demand because Asia exports to the U.S., Europe and Japan.
Some analysts are crediting firming external demand, but more are looking at internal factors.
That divergence indicates that external demand is sluggish, and that domestic demand is the main driver of growth.
Faced with strong external demand for AAA-rated assets, the financial system got creative.
Over the past two years, governments should have seized the opportunity of strong external demand to push ahead with reform.
They point out that Germany was able to grow in a period of flat domestic demand because external demand was booming.
Matching that pace of growth will be tougher this year, though external demand for Thai manufactured and farm goods should remain strong.
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However fast companies are cutting capacity that once served Americans' debt-fuelled consumption, Japan's whole economic structure is geared towards meeting external demand.
"As long as the housing shortage persists, we have no alternative but to restrict external demand and curb speculative activities, " he said.
This reflects a protracted period of weak external demand with consequent strongly negative effects on exports and increasing uncertainty about high-growth emerging countries.
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At the same time it forecast growth in Asia would be moderate, supported by resilient domestic demand and a modest growth in external demand.
The Bank of Japan and the country's law makers have said the economy is in a slump as Europe's debt crisis weighs on external demand.
Outside of China and India (which this week reported 8.8% second-quarter growth compared with a year earlier), developing Asia remains heavily dependent on external demand.
"New export orders contracted after a temporary rebound in March, suggesting external demand for China's exporters remains weak, " said Qu Hongbin, China chief economist at HSBC in a statement.
"Despite the still tepid external demand, the domestic-driven restocking process is likely to add steam to China's ongoing recovery in the coming months, " said Qu Hongbin, chief China economist at HSBC.
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Add in an anaemic recovery, at best, in America, and the worry that its economy might tumble off a fiscal cliff in December, and the outlook for external demand is bleak.
"The next two years should see some improvement, with a normal monsoon likely to lift agriculture, and exports, industry and services expected to expand on stronger domestic and external demand, " it said.
With expected sluggish growth in industrial countries in the short run, external demand for frontier country exports is expected to be driven increasingly by growth in the BRICS, according to the IMF.
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But it noted that China already had made strides in cutting its reliance on external demand and that domestic rebalancing was also under way, with consumption a bigger driver of growth than investment since 2011.
New orders came in lower at 54.5 from 55.1, while new export orders surprisingly rose to 52.2 from 51.9 suggesting external demand continued to improve thanks to the U.S., but domestic demand may have weakened.
From a medium-term perspective, while slowing external demand and rising domestic production costs will continue to pose headwinds for Chinese exports, some encouraging developments lead to the ongoing optimism on China, even if it is more subdued.
"The biggest reason for the decline in gross domestic product (GDP) is external demand was weak and domestic demand did not recover as quickly as we thought, " said Shuji Tonouchi of Mitsubishi UFJ Morgan Stanley Securities in Tokyo.
Hill said the ability to drill down into real-time point-of-sale (POS) data to make informed decisions and receive early warnings about stock-outs, promotion effectiveness, sales velocity, and external demand drivers means retailers can quickly adapt plans to enhance performance.
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That means that external demand needs to be going up, and, as long as the European Central Bank is trying to keep average eurozone inflation slightly below 2%, that probably means that inflation in Germany needs to be significantly above 2%.
The better October flash PMI and September data paint a consistent picture of a likely further pickup in economic activity on the back of more accommodative monetary conditions, increasing infrastructure investment, recovering property market activity in second and third tier level cities and improving external demand, mainly in Asia and emerging markets.
"The trade data (shows) that external demand still remains weak, which is widely-known to the market, so I think investors will pay more attention to indicators that reflect companies' business operations, profitability and revenue growth, such as industrial production and power consumption, before they make up their mind, " said Dongxing Securities analyst Sun Zheng.
Faced with slowing external and domestic demand, Japan's central bank has taken various steps to try and spur growth.
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Weak external and domestic demand has weighed on Chinese manufacturers.
BBC: China manufacturing activity shrinks again in September
The downside scenario assumes a return to recession next year, partly as a result of weaker external and domestic demand, with real GDP declining by 0.5% in real terms, followed by a weak recovery thereafter.
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Ease of use and better portability are fueling demand for external drives.
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