WRAPUP 2-China’s factories, retailers stumble on COVID-19 disruptions

wrapup 2 chinas factories retailers stumble on covid 19 disruptions

Sumary of WRAPUP 2-China’s factories, retailers stumble on COVID-19 disruptions:

  • By Stella Qiu, Gabriel Crossley4 Min ReadBEIJING (Reuters) -China’s factory and retail sectors faltered in August with output and sales growth hitting one-year lows as fresh coronavirus outbreaks and supply disruptions threatened the country’s impressive economic recovery.
  • In the industrial sector, production curbs hit output of aluminium and steel, while a drastic cut in fuel export quotas hurt China’s crude oil throughput.
  • China’s services activity slumped into contraction in August, a private-sector survey showed, as restrictions to curb COVID-19 once again closed shopping malls and many businesses in parts of the country.
  • KFC operator Yum China Holdings Inc said on Tuesday its adjusted operating profit would take a 50% to 60% hit in the third quarter as the spread of the Delta variant in China closed restaurant and “sharply reduced sales”.
  • “As growth is approaching the lower end of the officially-estimated potential growth range of 5.0-5.7%, Beijing may step up targeted easing to generate a moderate pick-up in growth in our view,” said Jingyang Chen, Greater China economist at HSBC.
  • ”Analysts also expect China to quicken spending on infrastructure projects later this year.
  • FOCUS SHIFTS TO PROPERTYThe weak data comes amid growing worries problems in China’s property sector could have a wider impact on the broader economy.

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