Steady economic growth continues (2)

"It indicated that China's social consumption ability still has huge potential," Cai said. "The income distribution reform should be pushed to sustain the economic growth from domestic consumption."

On Friday, the NBS and the CFLP revealed the manufacturing PMI in January was 50.4, compared with 50.6 in December, and suggested the external market still remained a risk factor while domestic demand is holding up.

"China's growth recovery remains on track, but it is not yet on a solid footing," said Chang Jian, an economist with Barclays Capital.

A moderate recovery, rather than any sharp rebound, will drive up the GDP growth at a pace of 7.9 percent, compared with the 13-year low of 7.8 percent last year, a research note from the investment bank said.

Along with the expected growth in development, Chang also predicted that inflation risk and property prices are likely to rise under a neutral monetary stance.

Wang Tao, the chief China economist with UBS AG, said infrastructure spending and industrial profit may show "very strong" year-on-year growth in the first quarter.