A street scene in Shanghai earlier this week. China’s services sector slipped into contraction in September. HONG KONG—Chinese economic activity remained feeble in September, with the services sector slipping into contraction, offering fresh evidence of the damage that Beijing’s Covid-prevention measures and a deepening real estate slide are inflicting on the country’s economy. Activity in the service sector, which includes the retail, catering and transport industries, were hammered as authorities across China tightened Covid-19 restrictions ahead of a key political gathering in October. A subindex measuring the services sector fell to 48.9 in September from 51.9 the previous month, China’s National Bureau of Statistics reported Friday. The poor performance in the services sector dragged the broader official nonmanufacturing purchasing managers index down to 50.6 in September, from 52.6. A reading below 50 indicates contraction. Weakening momentum in the services sector underscores the limits to Beijing’s campaign to spur domestic […]