China’s economy slowed more than expected in July, adding to signs that the global recovery is coming under pressure as the delta virus variant snarls supply chains and undermines consumer confidence.
Retail sales were hit by tough new virus restrictions introduced toward the end of the month to contain fresh outbreaks. Flooding in central China and weak auto sales due to a chip shortage hurt manufacturing, while a slowing property market and environmental policies reduced output of steel and cement, hitting commodity demand.
Alongside a slump in U.S. consumer confidence to an almost decade low and increasing supply chain pressures in southeast Asia, China’s data underlined the potential havoc the more contagious delta virus variant could have on the global recovery. A key container port in China was partially shut last week after a worker was infected there, disrupting trade at a time when businesses are ramping up for the…
