Malaysia: Growth in industrial production moderates in December
February 10, 2017
Industrial production grew 4.7% in December from the same month of the previous year. While the figure came in below the strong 6.2% increase registered in November, it still managed to beat market expectations of a 4.0% rise. According to the Department of Statistics Malaysia, December’s weaker reading reflected a deceleration in two (manufacturing and electricity) of the three key sectors that make up the index.
Regarding December’s result, economists at Nomura commented that, “this was mainly due to an unfavourable base effect – official seasonally adjusted data show a 0.9% m-o-m expansion in December, similar to November’s [0.8% expansion].” On a monthly basis, industrial production growth edged up to 0.9% from November’s 0.8% in seasonally-adjusted terms, which marked the highest figure in six months. Meanwhile, annual average growth in industrial production accelerated to 3.8% in December from November’s 3.7%.
Author: Luis Lopez Vivas, Economist