HONG KONG, May 10 Reuters People in China splashed out on dining, travel and luxury goods after emerging from three years of pandemic restrictions but are still not spending freely on routine consumer items, if first quarter corporate results are an indication.

There was a broad bounce in earnings after China ended its zeroCOVID policy involving citywide lockdowns and extensive quarantine in December, but consumer caution over global growth and job prospects have dented confidence and overall demand.

China Ashares posted 3.2 growth in earnings in the first three months from a year earlier, rebounding from a 5.7 drop in the fourth quarter of 2022, BofA Securities estimates.

The benefits to companies, however, varied widely even though the economy grew faster than expected in the first quarter.

Restaurants and tourism businesses recovered, with travelrelated consumer services sector earnings surging 155, data from China International Capital Corp CICC showed. Foodandbeverage sector earnings jumped 18 and automobiles were up a smaller 8.

In contrast, both home furnishings and apparel firms39; earnings declined 9.

Subsector results further highlight the divergence in consumer behavior. Major jewelry brands Lao Feng Xiang and Chow Tai Seng saw doubledigit growth in earnings, while leading cosmetics firm Bloomage Biotechnology posted a 17 decline in its net profit due to lukewarm online sales.

Norman Villamin, group chief strategist at UBP, said consumer confidence will…