Business Maverick: China’s Consumers Face Deeper Economic Damage From Covid Lockdowns

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China is facing a temporary hit to factory production and a lingering consumer slump amid the strictest Covid controls since the initial outbreak two years ago.

of Covid cases in the city. That suggests an attempt by officials to minimize the fallout, especially for factories.

“Consumption may still be subdued and only recover mildly after the outbreak is brought under control,” said Liu Peiqian, China economist at NatWest Group Plc. The services sector and tourism will find it difficult to fully revive as sustained and synchronized easing of travel policies is unlikely, she added.

Here’s a look at what the early signs tell us about the likely economic fallout from China’s Covid controls:An index measuring activity in China’s emerging industries fell to 49.5 in March, below the 50-level that separates expansion from contraction, according toresults published by China Logistics Information Index Co. and a research institute linked to the Ministry of Science and Technology.

 

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