BEIJING, April 27 Reuters China39;s industrial profits fell in March and slowed gains for the quarter compared to the first two months, official data showed on Saturday, raising doubts about the strength of a recovery for the world39;s secondbiggest economy.

Cumulative profits of China39;s industrial firms rose 4.3 to 1.5 trillion yuan 207.0 billion in the first quarter from a year earlier, National Bureau of Statistics NBS data showed, slower than a 10.2 rise in the first two months.

Profits fell 3.5 yearonyear in March. NBS did not break down monthly numbers for JanFeb, but said during the release in March that monthly numbers had extended gains since August 2023.

The reading complemented a slew of economic indicators for March such as retail sales and industrial output that pointed to frail domestic demand despite solid firstquarter GDP growth.

Signs of the economy gaining momentum in the opening months were shown to have gradually given way to concerns over lacklustre demand at home.

If profit growth continues to slow, the repair of the asset and liability structure of manufacturing firms and their willingness to expand investment may also be affectedsaid Bruce Pang, Chief Economist and Head of Research in Greater China at JLL.

Hightech manufacturing industry led the growth with the 29.1 rise in profits in the first quarter, NBS said in a statement, adding the recovery of firms39; profits was uneven.

Profits in the automobile manufacturing industry grew 32.0 on…