China’s Recovery Falters With No Easing of Covid, Housing Risks
- Manufacturing improved in September, services contracted
- Construction was a bright spot, but export orders falling
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China’s economic recovery faltered in September, with Covid lockdowns continuing to curb consumer spending and no respite seen in the housing market despite more central bank support.
The first official data for September indicated that while manufacturing improved slightly, the services industry contracted for the first time since May as virus outbreaks and the Covid Zero policy continue to weigh on consumption. That suggests while the economy likely picked up from its near-contraction in the second quarter when Shanghai was in lockdown, there are no signs of strong recovery.