China’s electricity output fell 7.5% in January8 February, 2012, 15:51. Posted by Zarathustra
Tags: Economy, Electricity Output, Power Ouput
China Securities Journal reported that China’s electricity output might have dropped 7.5% in January, citing sources close to the China Electricity Council.
It is rather well known that electricity output/consumption of China is probably a good proxy for economic activity. Particularly for people who are sceptical about the Chinese statistics numbers, power output would be an alternative gauge.
But as always, one should be cautious about reading into too much into Januarys and Februarys macro data as Chinese New Year could distort the picture (and the Chinese New Year came early this year). However, a drop of 7.5% in power output/consumption is a rather huge drop that may not be able to be fully explained by Chinese New Year alone, as the chart below illustrates. The last instance when you see huge drop of a comparable magnitude was during the post-Lehman crisis.
Source: National Bureau of Statistics, China Electricity Council