Chinese data this week will show the damage done from a widespread Covid outbreak last month that partially shut the world’s third-busiest container port and sent parts of the country back into lockdown. Growth in industrial production, retail sales, and investment likely weakened in August. Purchasing managers’ surveys and other high-frequency indicators already foreshadowed a sharp drop in spending after tough new virus restrictions were introduced to contain cases. Those reports on Wednesday will probably confirm the economy is still operating at two speeds. While global momentum has resulted in record monthly exports, households aren’t confident enough to spend like before. Even with the virus outbreak contained, questions remain about the durability of consumer demand. High-frequency data tracked by Bloomberg Economics suggests further weakness in the labor market in early […]