China’s industry and retail weaken in August as covid advances

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The industrial and retail sectors of China weakened in August as production and sales advanced to one-year lows as new outbreaks of coronaviruses and supply problems threaten the country’s economic recovery.

Industrial production advanced 5.3% in August compared to the previous year, after rising 6.4% in July and marking the weakest pace since July 2020, data from the National Statistics Agency showed this Wednesday. Analysts expected an advance of 5.8%.

Consumer spending was also affected by the increase in local Covid-19 cases and flooding, with sales advancing just 2.5% in August over the same period last year, well below the forecast for a 7.0% increase. and the weakest pace since August last year.

“Economic growth slowed in August as consumption was hurt by the impact of Covid’s surges and investment remained weak,” said Louis Kuijs, head of Asia economics at Oxford Economics.

“Meanwhile, a new outbreak that started a few days ago in Fujian poses downside risks to our forecast of accelerating fourth-quarter growth after a weak third quarter.”