BEIJING - China's economy grew at its slowest pace in at least a decade in the first quarter, but stronger industrial activity added to tentative signs the slump might be bottoming out.

The world's third-largest economy grew by 6.1 percent from a year earlier as the global financial crisis battered trade, the government reported. That was down from 6.8 percent the previous quarter.

"The overall national economy showed positive changes, with better performance than expected," Li Xiaochao, a spokesman for the National Bureau of Statistics, said at a news conference. But Li warned that the economy still "faces pressures of a slowdown in the coming period."

The quarterly growth appeared to be the lowest in at least a decade, though China has repeatedly revised its historical data, making comparisons difficult. Analysts said the 6.8 percent rate in the fourth quarter was the lowest since 2001 and possibly earlier.

Industrial output surged by 8.3 percent in March from a year earlier, up from a 3.8 percent growth rate in the first two months of the year, Li said. Investment in factories and other fixed assets soared 28.6 percent from a year earlier.

Bank lending also rose in March and auto sales hit a new monthly high. But the government has cautioned that a possible rebound is still fragile and has called for renewed efforts to boost growth.

Beijing is carrying out a 4 trillion yuan ($586 billion) stimulus package that aims to reduce reliance on weakening trade by boosting domestic consumption.

The World Bank and private sector economists say they see a Chinese recovery possibly beginning this year. The World Bank says it expects the economy to grow by 6.5 percent, while the government has set an 8 percent target.

The collapse in global demand for Chinese goods threw at least 20 million people out of work as factories closed. It is unclear how many workers might have found new jobs in public works projects financed by the stimulus package.

Exports fell 17 percent in March, the fifth monthly decline, but that was less severe than February's 25.7 percent plunge. Analysts said that suggested trade was stabilizing, though they said exports should remain weak this year.

Consumer spending _ a key element of the government's recovery plan _ rose 15 percent in the quarter, the statistics bureau reported, though that rate was slightly lower than growth reported for previous months.

Consumer prices fell by 1.2 percent in March, the data showed, leaving Beijing room to cut interest rates further to boost growth while avoiding fueling pressure for prices to rise.

On the Net:

National Bureau of Statistics of China (in Chinese): http://www.stats.gov.cn

A service of the Associated Press(AP)