Power output in China grew by 4.21% year-on-year in July to 348.49 billion kilowatt hours, in a sign that the economic recovery is starting to take hold, the South China Morning Post reported, citing state media. It was the second consecutive month of expanding power output, and represented the highest growth this year. In June power output expanded by 3.59% – the first month of growth after eight consecutive months of shrinking output. However, analysts cited a 10.3% decline in power output in Shanghai and a 6.2% decrease in Jiangsu in the final days of July as indicators that the economic recovery may still face some hurdles. Industrial activity accounts for more than 70% of China’s power consumption, and consequently power output is viewed as a key economic indicator.