China consumer, factory activity down as virus controls rise

By JOE McDONALD
AP Business Writer

BEIJING (AP) — Chinese consumer spending contracted in October and factory activity weakened as anti-virus controls following a rise in infections weighed on the economy. Government data showed retail sales sank 0.5% compared with a year ago, down from September’s 2.5% expansion, as millions of people were confined to their homes. Growth in factory output decelerated to 5% from the previous month’s 6.3%. The performance was even weaker than expected by forecasters who said activity would cool as Chinese anti-virus controls and interest rate hikes by the U.S. Federal Reserve and other central banks weigh on global activity.