Industrial output records quickest growth since April 2021 in January

Industrial output increased 18.3% compared to the same month of the previous year in January, which followed December's 5.8% increase. January's print marked the best reading since April 2021. Looking at the details of the release, January's pickup was broad-based, with the manufacturing, electricity and mining and quarrying sub-sectors all gaining steam. That said, the January data was flattered by a low base effect; production fell sharply in January 2023 due to Lunar New year celebrations, which this year fall in February. Meanwhile, the trend improved, with the annual average growth of industrial production coming in at 4.2% in January, up from December's 2.0%.

A recovery in overseas goods demand should boost manufacturing and by extension overall industrial production in 2024 as a whole; industrial production growth in 2024 is likely to be the fastest in ASEAN.

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