China's macro-economic climate index fell in April, signaling a continued shift from the brink of overheating to moderation.
The index fell to 110.7 from 113.3 in the first three months, the National Bureau of Statistics said on its Website (www.stats.gov.cn).
As of April, the reading had been in the "green" (normal) zone for four consecutive months. It was on the verge of overheating from September to December.
Analysts said the challenge of potential overheating had eased, but inflationary pressures remained strong as the massive May 12 earthquake that hit Sichuan Province would increase inflation in the short term. Sichuan is one of China's major food-producing regions.
Gross domestic product (GDP) rose 10.6 percent in the first quarter, 1.1 percentage points less than a year earlier, because of weak external demand and the most severe winter in more than five decades.
Sun Fanghong, an analyst at Ping An Securities, said the economy was faced with downward pressure as inflation hit consumer spending and tightening measures slowed investment.
However, Sun said the economy would remain robust and grow by about 10 percent this year, boosted partly by post-quake reconstruction.
"The authorities also need to resort to more fiscal policies to support the economy, as there's no sign that tight monetary policy will be eased in the short term in the face of high inflation," Sun said.
Source: Xinhua
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