China’s economy under pressure as factory activity slows in Aug, services contract
- Twin PMI surveys point to growing pressure on businesses
- Surveys suggest economy contracted in Aug – economist
- High raw material prices, COVID-19 curbs hurt economy
- Analysts expect more policy support later in year
BEIJING, Aug 31 (Reuters) – China’s businesses and the broader economy came under increasing pressure in August as factory activity expanded at a slower pace while the services sector slumped into contraction, raising the likelihood of more near-term policy support to boost growth.
The world’s second-biggest economy staged an impressive recovery from a coronavirus-battered slump, but momentum has weakened recently due to domestic COVID-19 outbreaks, high raw material prices, slowing exports, tighter measures to tame hot property prices and a campaign to reduce carbon emissions.
The official manufacturing Purchasing Manager’s Index (PMI) fell to 50.1 in August from 50.4 in July, data from the National Bureau of Statistics (NBS)…
