Malaysia: Decline in industrial output softens in August
October 12, 2021
Industrial output dropped 0.7% year-on-year in August (July: -5.1% yoy), as tight Covid-19 restrictions continued to weigh on industrial activity. The softer decline was largely attributed to a rebound in manufacturing output. Meanwhile mining and quarrying production swung into contraction in August.
On a seasonally-adjusted monthly basis, factory output rose 2.3% in August (July: -6.0% s.a. mom), the best result since February. Meanwhile, annual average industrial production growth came in at July’s 5.3% in August.
Commenting on the growth outlook analysts at ANZ said:
“We expect Malaysia to rebound in Q4, when the vaccination coverage widens further and the current pandemic wave subsides further to allow for an economic reopening. Thus, we have kept our GDP growth forecast for 2021 largely unchanged at the previously downgraded 4%. Further out, at 5.5% for 2022 and 4.9% for 2023, our growth forecasts reflect optimism about the pace of recovery.”