(Repeats story that moved late on Tuesday)
By Casey Hall and Sophie Yu
SHANGHAI, March 14 (Reuters) - Chinese consumers, unshackled from COVID-19 restrictions, are returning to hotels, restaurants and some shops, but they are choosy about what they buy, disappointing hopes for an immediate post-pandemic splurge.
China's battered property market, lingering worries over job stability, and government parsimony in wages, pensions and medical benefits are keeping shoppers cautious.
Analysts say their prudence adds pressure on policymakers, who have flagged boosting domestic demand as a top priority, to further stimulate the economy. But direct consumer subsidies are unlikely, sources told Reuters last month.
In the absence of additional support, the recovery in household consumption, long seen as key to improving sustainability of growth in the world's second-largest economy, is likely to be gradual and uneven, they say.
After China dropped most pandemic controls late in 2022, the share prices of many consumer-facing companies rose, reflecting optimism that a spending splurge was imminent.
"We have been warning that markets may become overly bullish about 'revenge' spending and the release of pent-up demand," said Nomura chief China economist Ting Lu, referring to the V-shaped spending recovery seen in the U.S. and other countries after COVID restrictions were lifted.
"Markets should curb their enthusiasm due to the limited possibility of a large stimulus package, the elevated unemployment rate, a lack of confidence in the property sector, a slump in exports and geopolitical tensions."
Prices of new Chinese homes fell for 16 months before steadying in January.
A survey of white-collar workers published last month by recruiting firm Zhaopin showed 47.3% of respondents were worried they might lose their jobs this year. Meanwhile, cash-strapped local governments have cut wages for civil servants, and older citizens are struggling with pensions that barely cover their costs of living.
Some economists, pointing to new household savings reaching 17.8 trillion yuan ($2.59 trillion) last year, an increase of 7.9 trillion yuan from 2021, had expected pent-up demand to drive a recovery in consumption even without policy support.
But there is little sign that enough money is being spent on goods and services to make much difference to consumption.
Data last week showed consumer inflation had slowed in February to its lowest annual rate in a year, while passenger car sales for the first two months of the year were down 20% on a year earlier. Imports have fallen faster than expected.