Diesel sales slide on weaker industrial activity

China's diesel demand is set to post its first fall in more than a decade this year, sources at the country's oil majors said, as a sputtering economy takes its toll on key industrial sectors.

Diesel, used to run trucks and tractors and generate power at construction and mining sites, is a bellwether of industrial activity. A fall in real consumption may signal China's economic slowdown is worse than official statistics indicate.

Recent economic statistics have boosted confidence that the world's second-biggest economy is regaining momentum after a spate of stimulus measures, although unexpected weakness in the services sector showed the recovery is still fragile.