China likely suffered another economic slowdown last month

Consumption Consumption took the hardest hit in August as the Covid-19 Delta variant spread across China, forcing the closure of tourist spots and some cities during the summer holidays. However even before those outbreaks, China’s consumption rebound was not solid.

BEIJING: China’s economy likely slowed further in August, with data on consumption, industrial output and investment due today to reveal the extent of the damage caused by an outbreak of the Delta variant.

The extent of the slowdown will be closely watched for sign that it’s serious enough to prompt authorities to change their current stance of slowly withdrawing liquidity from markets and keeping stimulus limited. The ongoing regulatory crackdown on sectors like education, the Internet and property may have exacerbated the recent economic weakness.