Rising COVID cases in China economic hubs, "the threat of damaging lockdowns is growing"

(ICYMI:

• China August Manufacturing PMI 49.4 (exp 49.2) & Non-manufacturing 52.6 (exp 52.2)

And there is another due today:

• Economic calendar in Asia Thursday, 1 September 2022 - Fed speaker and China PMI

)

Capital Economics wrote on the Chinese PMI results for August yesterday, and as part of the commentary was this:

• According to Capital Economics, 41 cities, responsible for 32% of China's GDP, are currently in the midst of outbreaks — the highest number since April.
  
  "For now, the resulting disruption appears modest, but the threat of damaging lockdowns is growing," said Julian Evans-Pritchard, senior China economist at Capital Economics.
  
  "And even if they are avoided, we expect growth to remain subdued going forward."

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That 32% is a concerning number. Damage to the Chinese economy is damage to the global economy. Something to keep an eye on.

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More:

• COVID-19 restrictions continue to stay the course in China

• China COVID update - areas of key port cities shunted back into lockdown