China's retail sales growth, factory output slow

Fresh data out of China shows consumer spending grew at a slower pace in August, largely due to a resurgence of coronavirus infections. That suggests the recovery by the world's second largest economy may be losing steam.

The National Bureau of Statistics said on Wednesday that retail sales rose 2.5 percent last month from a year earlier. That is 6 percentage points lower than July, with two main factors seen responsible for the slowdown.

Sales in the food service sector took a big hit from the spike in COVID-19 cases. New vehicle sales slid amid a global semiconductor shortage.

Meanwhile, industrial production rose 5.3 percent in August, but growth was 1.1 percentage points less than in July.

China's economy had rebounded from a slump triggered by the pandemic. But it is now weakening, partly due to soaring raw material prices worldwide.