August is said to be the summer consumption peak to create economic growth for China, but this prospect is blurred for Covid-19.

The new cluster of outbreaks in Nanjing City can increase pressure on retail spending, and weaken operations at factories.

The world's second largest economy, which has been warned about an imminent economic crisis, now faces a greater decline in consumer spending due to limited travel measures and

People register for Vaccine Covid-19 in Nanjing.

August is peak for summer consumer activities.

Consumer spending heavily affected from the economic recession due to the influence of the pandemic.

According to Xiaolei, marketing director at the Cyts Tours Tourism Company, China, spending for entertainment and tourism activities can almost recover to the pre-pandemic level if Covid-19 does not spread the word

The impact of the latest outbreaks to the summer tourism market is extremely bad.

Similar to the Delta strain outbreak in Guangzhou City, Guangdong Province, in the period of May and June, Nanjing cluster can become more serious, making consumer spending cut,

Previously, due to the outbreak of epidemics, the Guangzhou economy witnessed a decline in consumer spending in a series of fields, from eating, traveling, retail and service.

In June, the growth rate of the two-year average retail revenue of Guangzhou was -2.4%, despite the fact that in the first 5 months, retail sales increased by 4.4%, Zhang Yu, Kinh houses

If this outbreak affects Nanjing 10 percentage points, it will reduce the national growth rate by 0.15 more percentage points, Zhang said.

Ting Lu, China Economic Specialist at Nomura Investment Bank, predicts that the Purchasing Management Index (PMI) for China's goods and services can continue to decline in August due to male translation cluster

The purchasing management index was announced by Caixin / Markit in the end of last week, showing that the factory activity in China's small companies in July fell to the lowest level since April last year.

However, the impact of the campaign in Nanjing can be minimized due to the disease that has not been spread to many production areas, Iris Pang, Head of the Chinese Economic Group at Financial Consulting Company

Up to now, the Delta transformation has been infected with more than 400 people in 24 Chinese cities.

As of August 2, all 31 provincial legal areas in the mainland have recommended to call people to limit travel and travel in the country to prevent viral spreads.

Chinese officials have ordered to close tourist destinations and festivals, while stopping flights to locations that are recognizing many cases of Truong Gia Gia tourist city.

Despite the new difficulties, Xiao-chun economic experts from Moody's Analytics do not assume that China's economic forecast in the second half will be lowered, because the government will quickly stamping, preventing long impacts

As we have seen in the outbreak in Guangdong, Chinese health officials have traced and prevented viruses very effectively, Xu said.