China’s economy under pressure as factory growth slows and services contract – business live | Business

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Worries about China’s economy are rising this morning, after growth across its manufacturing companies all-but-stalled, and its service sector contracted for the first time since the height of the pandemic early last year,

The latest official survey of purchasing managers showed that the Chinese economy cooled in August, as rising raw material costs and the ongoing Covid-19 pandemic hit companies.

China’s manufacturing Purchasing Manager’s Index fell to just 50.1 in August from 50.4 in July, data from the National Bureau of Statistics (NBS) showed this morning. That’s only slightly above the the 50-point mark that separates growth from contraction.

Factories reported that new orders fell this month, with new export demand hitting its lowest in over a year, leading to another month of headcount cuts.

The service…