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"Economic activities never existed in isolation. They are dynamic and cyclic. Since China has deeply integrated itself into globalization, it cannot expand domestic demand without the smooth operation of the global industrial and supply chains," said Wei Jianguo, vice chairman of the China Center for International Economic Exchanges.

"Elderly care, child care and housekeeping services are crucial to improving people's well-being, addressing the aging of the population and boosting employment. There is huge demand in this regard. The inadequacy of child care service, in particular, has become a bottleneck issue with the implementation of the second-child policy," Li said. "Faster development of such services can serve multiple purposes, including boosting consumption, promoting a better division of labor and facilitating economic transformation."

"Failing to do so could see restrictions re-imposed at a loss of more than 4 billion Australian dollars (.57 billion) per week to the economy.

"Experience in most countries shows that whenever competition is introduced, it generates buzz and increases market volumes all round," he said.

"Despite the decline, consumers continue to view current conditions quite favorably, Lynn Franco, senior director of economic indicators at the Conference Board, said in a statement.