China’s May economic data discrepancy, suggest industry restructuring

China's May industrial output and power generation growth showed discrepancy which the China's National Bureau of Statistics (NBS) on Tuesday ascribed to industrial restructuring and the use of energy-efficient products.

China's May annual industrial production growth accelerated to an eight-month high of 8.9 per cent from 7.3 percent in April, while power generation fell 2.7 per cent.

However, coal output was up 9.6 per cent over the same period last year to 250 million tons in May, according to NBS.

Generally industrial output as well as power generation move in tandem, but they've begun to diverge as many industries are undergoing structural change and are improving their energy efficiency, the NBS online statement said.

Such discrepancies have occurred before, usually when the economy hit a turning point, said the NBS statement.

The NBS statement ascribed the faster-than-expected industrial output growth to a rebound in the growth rate of heavy industry.
It also expects accelerated growth in almost three-quarters of all 39 industrial categories, higher growth rates in 20 of the 31 provincial regions and output gains in quake-hit Sichuan Province.

The first 10 days of this month showed China's daily power generation reached a high of 9.76 billion kWh, according to the China National Power Dispatching and Communication Centre.

Power generation is one of the key indicator of a country's economic health, with the power generation in June improving considerable, indicates economic recovery.