Economics

China’s Consumers Face Deeper Economic Damage From Covid Lockdowns

  • Factory production may take temporary hit from shutdowns
  • Tourism, restaurant, cinema sales slump as people stay home
An empty street in Shenzhen during the lockdown on March 14.Photographer: Liang Xiashun/VCG/Getty Images
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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.

Company statements and high-frequency indicators suggest a drop in output and spending in March after China imposed lockdowns in key cities like technology hub Shenzhen and Changchun, a center for automakers. Official activity data won’t be available for several weeks still.