Services mitigate manufacturing malaise

Government opts for 'soft' stimulus measures to achieve growth targets this year

The steady expansion of Chinese service businesses in March comforted policymakers during a period of gloom for the manufacturing sector, but it is unlikely to stop the slowing momentum for economic growth in the first quarter of the year.

The government has decided to take "soft" stimulus measures, including the renovation of shantytowns, railway construction and preferential tax policies for more small companies to support growth.