China's economy takes a knock from Delta flare-up     

Beyond the coronavirus outbreaks, China’s recovery is also showing signs of faltering in the wake of recent regulatory crackdowns and weak demand at home.

The plunge in China’s non-manufacturing PMI into contraction in August shows the Delta outbreak impact was much more severe than expected.

China’s economy took a knock from the Delta virus outbreak in August, adding to signs of a slowdown in growth in the second half of the year and fueling speculation of more central bank support.

The official purchasing managers surveys showed the services industry contracted for the first time since February last year as consumers cut back on spending and travel amid new virus curbs. The manufacturing purchasing managers’ index fell slightly, partly due to supply-chain disruptions.