BEIJING, (Reuters) – China’s catering and accommodation sector fell in January and March from a year ago for the first time since 2020. This is due to falling consumption and COVID travel restrictions.

Inflation adjusted 0.3% decreased the sector’s production to 386.1 billionyuan ($60.6 billion) according to the National Bureau of Statistics in a Tuesday statement.

The third quarter 2020 was the last time accommodation and catering contracted, with output falling 5.1%.

The overall Chinese economy expanded faster than analysts expected in the first quarter. However, March saw a sharp drop in consumption and real estate sales, according to data released Monday by the Statistics Bureau.

The retail sales declined 3.5% on an anual basis in March. This is the worst month since April 2020.

Meng Wei spokeswoman for the National Development and Reform Commission on Tuesday, saying that “the top priority is to apply policies to help troubled industries such as catering and retail.”

According to the data provided by the Statistics Bureau, the sector of accommodation and catering saw its lowest output since the second quarter 2020.

($1 = 6.3709 renminbi)