China's National Energy Administration recently released data showing that total electricity consumption in May rose by 5.3% year-on-year to 449.2 billion kWh, marking a significant rebound from the previous period of declining growth rates. This represents an increase of 0.7 percentage points compared to April's growth rate. In April, total social electricity consumption had increased by 4.6%, while March saw a rise of 7.2%, and February recorded a sharp jump of 13.7%. However, the growth rate has been gradually slowing down since then.
The May figures show that industrial electricity consumption grew by 5.5%, which is 1.7 percentage points higher than in April, signaling a temporary halt to the sluggish performance of the real economy. This suggests some positive signs of economic activity picking up across key sectors.
Looking at the cumulative data for the first five months of the year, total national electricity consumption reached 1,163.8 billion kWh, reflecting a year-on-year increase of 5.2%. Among the different sectors, primary industry electricity use dropped by 5.8%, while secondary industry consumption rose by 5.1%. The tertiary sector saw a 6.4% increase, and urban and rural residential electricity use also climbed by 6.4%.
In terms of power supply capacity, China added 29.36 million kilowatts of new generating capacity from January to May, including 8.35 million kilowatts from hydropower and 13.04 million kilowatts from thermal power.
Notably, a range of key economic indicators—including the manufacturing PMI, exports, fixed asset investment, retail sales, and electricity consumption—have shown signs of recovery. These trends suggest that China’s economy is gaining momentum under the influence of targeted "micro-stimulus" policies.
Electricity consumption is often referred to as one of the "Li Keqiang Index," named after Premier Li Keqiang, who has long used three key metrics—electricity use, new loan issuance, and railway freight volume—to assess regional economic health.
The importance of electricity consumption as an economic indicator was highlighted in the 2014 government work report, where it was included as a target, aiming for a 7.5% annual increase in total social electricity consumption.
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