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China’s economy is being rattled by the Delta variant and supply chain woes

Mount Equity Group Tokyo, Japan > News > Markets > China’s economy is being rattled by the Delta variant and supply chain woes

An official survey of manufacturing activity fell to 50.1 in August from 50.4 in July. That was just above the 50-point mark indicating expansion rather than contraction, but still the slowest rate of growth since the start of the pandemic. Service industries, which now account for a larger slice of the world’s second biggest economy, fared even worse. The non-manufacturing Purchasing Managers’ Index plunged to 47.5 from 53.3 in July, the first contraction since February 2020.China’s economy initially coped with the pandemic much better than many of its peers, recording growth last year as others shrank. But fallout from the Delta variant and China’s zero-Covid approach has wrought havoc in recent weeks. The country’s worst coronavirus outbreak in a year spurred authorities to take dramatic measures to stop new infections, including locking down cities, canceling flights and suspending trade. The aggressive and uncompromising…

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