China's economy under pressure as factory activity slows in August, services contract

China's growth has recently shown signs of losing steam due to domestic Covid-19 outbreaks. - AFP

BEIJING (Reuters): China's businesses and the broader economy came under increasing pressure last month as factory activity expanded at a slower pace while the services sector slumped into contraction, hurt by coronavirus-related restrictions and high raw material prices.

The world's second-biggest economy staged an impressive recovery from a coronavirus-battered slump, but growth has recently shown signs of losing steam due to domestic Covid-19 outbreaks, slowing exports, tighter measures to tame hot property prices and a campaign to reduce carbon emissions.