I should really be at University Library right now but I just could not resist blogging about this.
The latest Industrial Production Index produced by the Department of Statistics has it that electricity output increased and more importantly, it increased based on year-on-year basis in July 2009. This means, electricity output has been increasing on year-on-year basis for two consecutive months. It first registered positive year-on-year growth in June 2009 after months of output reduction. This is another blow to government spending-based stimulus advocates because it indicates that the economy is recovering well before the effect of stimulus spending comes into play.
Electricity output, or rather consumption (but really, the two should be almost the same) has been argued as a good indicator of economic performance. See this. The following table is taken from the Department of Statistics.
|
Sectors |
Index July 2009 |
% Changes Year-on-Year |
% Changes Month-on-Month |
| IPI |
104.8 |
-8.4 |
7.1 |
| Mining index |
99.6 |
-1.9 |
10.0 |
| Manufacturing index |
106.2 |
-12.0 |
6.2 |
| Electricity index |
118.7 |
3.1 |
3.5 |
I will blog about this later. For now, I need to make a dash to the University, which is, like, 100 meters away. Oh, so far away!
Heh. I love my life.
2 replies on “[2078] Of a good sign?”
[…] by increase in electricity consumption, holding all else constant. That is why I was excited as early as July this year, as far as the IPI is concerned, when growth in year-on-year electricity consumption first […]
Wish it were true:
http://econsmalaysia.blogspot.com/2009/09/july-industrial-production-d eceptively.html