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China Daily Website

Electricity use seen overstating slowdown

Updated: 2012-08-09 15:15
( China Daily)

A stagnating electricity output that fanned speculation China's economic slowdown is becoming more pronounced may instead be evidence of an accelerated transition to a more services-based economy.

Power generation in June was unchanged from a year earlier even as industrial production rose 9.5 percent. Heavy industries, including metals and cement, use about 60 percent of the electricity output and account for 20 percent of GDP, according to GK Dragonomics, a Beijing-based consultant.

The shifts signal that electricity's relevance as an economic indicator is receding.

An evolution within manufacturing to more efficient production is also damping electricity use as China upgrades its factories.

China Daily - Agencies

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