They did it again.  Beijing's economic statistics for July, issued last week, appear to have been "made up," as the Chinese now characterize fictitious numbers.  One figure, whether accurate or not, was especially illuminating.  Last month, the production of electricity, according to the National Bureau of Statistics, increased 2.1% year-on-year.

There is growing evidence that officials have been artificially inflating the closely followed electricity number to make the economy appear stronger than it actually is, but even a 2.1% increase indicates China has flatlined.  

Why? 

Historically, the growth of electricity in that country has outpaced the growth of its gross domestic product, the most widely followed measure of economic performance. 

The conclusion that China's economy is probably shrinking is confirmed by manufacturing surveys and prices indexes,