Electricity demand cools rapidly


A quicker slowdown in China's electricity demand may point to a further cooling in its economic growth, and reinforce the rationale for policy loosening, Fitch Ratings said.

Chinese power producers have expressed concern that demand in April and May had been much worse than expected and initial indicators showed a steeper drop in growth last month than in April, Fitch said in a report yesterday.

The National Development and Reform Commission, the nation's top economic planner, said last Friday that initial data showed power use rose 5.8 percent in the first five months of the year, which the NDRC described as relatively low compared with 12 percent in the same period in 2011.

Earlier official data showed power use grew 3.7 percent in April, the lowest in 16 months.

The fall in China's official purchasing managers' index in May to 50.4 from 53.3 in April, the lowest level so far, further supports the producers' initial observations, Fitch said.



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