China’s industrial power use in July rose to the highest monthly total in a year, adding to signs that the world’s second-biggest economy is stabilizing.
Power use by companies in the mining, manufacturing and construction sectors grew 8.1 percent from a year earlier to 366.6 billion kilowatt-hours, data from the National Energy Administration showed today. That’s the highest monthly total in at least a year, according to data compiled by Bloomberg.
The increase in power use, along with better-than-expected growth in industrial output, exports and imports, boosts odds Premier Li Keqiang will meet this year’s target of 7.5 percent economic expansion. Growth has slowed for two consecutive quarters, moderating to 7.5 percent in the three-month period through June.
“This is a sign of the economy stabilizing,” Tian Miao, an energy analyst at North Square Blue Oak, a London-based researcher, said by phone today. “With the government pushing more investment in infrastructure and urbanization, industrial output has started to pick up, increasing power demand.”
Premier Li, who has championed urbanization as a “huge engine” for growth, said on July 26 the nation will speed up railway construction with a focus on central and western regions.
Total power use in July grew 8.8 percent to reach 495 billion kilowatt-hours. Household users consumed 58.5 billion kilowatt-hours of power, rising 12 percent from a year earlier, while power use in the services industries climbed 13 percent to 58.6 billion kilowatt-hours.