China's manufacturing, services and technology sectors all took a hit in August as the country took steps to tackle the Delta variant, according to government figures.
Supply chains faced disruptions thanks to COVID-instigated restrictions including suspended port operations, and the services sector contracted for the first time since last March, figures from the National Bureau of Statistics showed.
This outweighed the improvement in the construction sub-index, which picked up following natural disasters in the previous month.
Magdalene Teo, a fixed income analyst for Asia at Julius Baer, said: "The impact of localised lockdowns will likely fade, given that China has swiftly brought the outbreak under control.
"Yet, the impact of policy clampdowns in various sectors on employment and consumption will likely continue to weigh on PMIs [Purchasing Manager's Index] in the coming months."
