SHANGHAI'S economy grew relatively stable in the first two months of this year despite a slump in the manufacturing sector, data from the Shanghai Statistics Bureau showed yesterday.

Industrial production shrank 5.7 percent from a year earlier to 449.6 billion yuan (US$69.4 billion) in January and February combined. It contracted 3.2 percent in December alone.

"It is partly a result of the effect of the Spring Festival holiday," said Tang Huihao, chief economist at the bureau. "But the moderation in the manufacturing sector was sharper than expected, which may require the attention of the authorities."