Chinese Power Consumption Collapses: Economic Growth Slowest Since Early 2009

Tyler Durden's picture


Not much to add here. If there still is any confusion why China is desperately manipulating its economic data, so balatantly in fact that virtually everyone has now noticed, this chart should put all doubt to rest. According to CLSA's Chris Wood using NEA data, China's monthly power consumption (the most accurate proxy for underlying economic strength according to the current premier) growth slowed from 5.5% YoY in Jan-Feb 2013 to 1.9% YoY in March, the slowest growth rate since May 2009 (as discussed in-depth here).

And just to make CNBC's life easier, we will prespin this data: the lack of growth merely shows there is much pent up growth on the sidelines, even if the country is now injecting more debt to just maintain the flatline, than ever.

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Mon, 05/13/2013 - 11:56 | 3556366 Cognitive Dissonance
Cognitive Dissonance's picture

My understanding is that even the Chinese power consumption figures are manipulated (upward I presume).

<Why would they not be since they are seen as such an excellent "tell" of what's really going on in China?>

Mon, 05/13/2013 - 12:00 | 3556384 Pladizow
Pladizow's picture

You cant spend on power, what you spend on gold!

Mon, 05/13/2013 - 12:14 | 3556437 TheFourthStooge-ing
TheFourthStooge-ing's picture

Perhaps a better metric to use would be the roadside nightsoil deposition rate per capita.

Mon, 05/13/2013 - 11:59 | 3556379 THE DORK OF CORK
THE DORK OF CORK's picture

But who will burn the new cheap coal now that Euro policy is to run down its coal plants ?

Mon, 05/13/2013 - 12:01 | 3556387 kito
kito's picture

they can follow the current u.s. calculations on gdp "growth".....the chinese can just "promise" to consume and all will be well.......................

Mon, 05/13/2013 - 12:02 | 3556388 THE DORK OF CORK
THE DORK OF CORK's picture

The giant global Barbell economy with a nat gas weight in the west and coal in the east is imploding.

Coal (australian coal ?)  needs to come back to Europe especially.

Mon, 05/13/2013 - 12:04 | 3556397 williambanzai7
williambanzai7's picture

Just thought I should mention that this Spring has been the coolest I can remember out here in the last ten years. And happily, my electric bills have been halved.

Mon, 05/13/2013 - 12:08 | 3556410 EhKnowKneeMass
EhKnowKneeMass's picture

Dang it; you just uncorrapsed the corrapsed. That ain't corr, you know.

Mon, 05/13/2013 - 12:25 | 3556473 Straw Dog
Straw Dog's picture

It's Global Warming, ask Al Gore, he'll explain it to you.

Mon, 05/13/2013 - 12:29 | 3556485 Rustysilver
Rustysilver's picture


Same observation here in CT. I wonder how the midwest is doing with the planting?

Mon, 05/13/2013 - 12:59 | 3556623 HulkHogan
HulkHogan's picture

They aren't planting yet.

Mon, 05/13/2013 - 16:31 | 3557770 _ConanTheLibert...
_ConanTheLibertarian_'s picture

They're face planting

Mon, 05/13/2013 - 12:42 | 3556533 paulbain
paulbain's picture




Interesting. Can you give us your location, e.g., city & state?







Mon, 05/13/2013 - 12:06 | 3556403 THE DORK OF CORK
THE DORK OF CORK's picture

The IEA energy policy advice has been a complete disaster................


Only now like a bunch of fucking weasels  - are they coming out and saying we made a mistake !!!!!!!!!!!!!!!,37375,en.html

Any Dork with a brain could have told them whats what years ago.


The IEA is run by a bunch of bankers who are only concerned with the profits from global wage arbitrage.

Mon, 05/13/2013 - 12:07 | 3556406 Doubleguns
Doubleguns's picture

Its a chinese chart you have to read it from right to left. Its actually climbing. /s


Hope thats not racist. If it is tough shit.  

Mon, 05/13/2013 - 12:07 | 3556408 Byte Me
Byte Me's picture

That 1929 moment?

Mon, 05/13/2013 - 12:10 | 3556417 Quinvarius
Quinvarius's picture

Just like US power consumption.  Hmmm.  I am seeing a pattern.  It is called global collapse.

Mon, 05/13/2013 - 13:47 | 3556879 Urban Redneck
Urban Redneck's picture

Printing your way to GDP growth is far more energy efficient and friendly for the environment.  The Chinese should be commended for following western best practices and for making the world a better place for all humanity to live and prosper.

-Ministry of Truth

Mon, 05/13/2013 - 12:21 | 3556419 firstdivision
firstdivision's picture

Same type of stuff happening here in the US on the demand side, but who cares, Teem Mom 3 is starting soon.

Mon, 05/13/2013 - 12:13 | 3556432 mattdubz86
mattdubz86's picture

no POMO no problem

Mon, 05/13/2013 - 12:22 | 3556460 ThunderingTurd
ThunderingTurd's picture

Does anyone have any comments on the roundtrip(s) in oil over the last couple of days?  Substantial selling at the open only to be bid up throughout the day.  Inquiring minds (read: shorts) want to know.

Mon, 05/13/2013 - 12:32 | 3556500 Rustysilver
Rustysilver's picture

I guessing that Chinese are using the Honda portable generators that run on coal. Hence, skewness in data.

Mon, 05/13/2013 - 12:51 | 3556575 RougeUnderwriter
RougeUnderwriter's picture

Maybe they've all gone solar and stopped consumer power off the grid.  :-)

Mon, 05/13/2013 - 13:48 | 3556882 SmittyinLA
SmittyinLA's picture

Wow, I saw on TV last night they're (Chicomgovt) subsidizing electric cars by 50%, even a tiny number of cars uses a ton o juice,

Mon, 05/13/2013 - 14:47 | 3557235 Matt
Matt's picture

Looks like Zerohedge has gone to political speak.

Chinese Power Consumption Collapses: INCREASES 5%

that's like "Saving" money by increasing spending by less than previously planned. We "Cut" the deficit by only increasing the deficit half as much as previously expected. I increased my income by spending less.

Chinese Power Consumption Growth Goes Horizontal doesn't have quite the same level of sensationalism, I guess.

Mon, 05/13/2013 - 14:49 | 3557241 FinalCollapse
FinalCollapse's picture

In China the growth in electricity usage is bigger than the growth in GDP given their still exploding urban population. This means that their GDP is flat at the best...

Mon, 05/13/2013 - 14:58 | 3557280 JenkinsLane
JenkinsLane's picture

Smoking gun

Mon, 05/13/2013 - 16:32 | 3557772 venturen
venturen's picture

Which government is more of a blatant Liar...USA or CHINA?

Mon, 05/13/2013 - 17:25 | 3558011 Element
Element's picture

Why do all sorts of macro indicators have this shape and trend over the same interval?

Mon, 05/13/2013 - 18:44 | 3558356 salimmk
salimmk's picture

Just wait until they start Bitcoin mining. Power consumption might go up.

Mon, 05/13/2013 - 20:46 | 3558737 patb
patb's picture

if the chinese are installing a lot of solar PV is that why growth for Electricity consumption is stalling?

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