Power generation improves in Dec, but demand remains weak

The deceleration in electricity generation abated in December. Total electricity generation declined 2.1% last month, notably lower than the 6.1% fall in November and 12.9% slump in October.

The improvement reflects the incremental increase in economic activity. The Purchasing Managers’ Indices released earlier this week indicate a sequential increase in services and manufacturing activity in December.

The recovery is led by the western region, home to a large industrial base and generation capacity. Total generation in the western region grew 3.5%, compared with a 5% decline in November and 14% drop in October.