Thursday, 17 May 2012
Chinese electricity production disappoints: soft landing goes down further
The stories about economic growth in China are not getting better. After decent numbers in March that did give hope of a soon end of the soft landing, April numbers disappointed severely. Credit growth deteriorated. Also worrying is the sudden decline of the electricity production in April. Because that is one of the more reliable numbers in the Chinese statistics it is even more worrying.
Several brokers say you must not get overpessimistic, this kind of growth of electricity production points to 6% growth and electricity production will grow faster soon.
(chart from FT)