Malaysia: Growth in industrial production moderates in January to four-month low
March 13, 2017
Industrial production grew 3.5% in January from the same month of the previous year. The figure came in below December’s 4.8% increase and market expectations of a 5.3% rise. According to the Department of Statistics Malaysia, January’s weaker reading reflected a deceleration in two (mining and electricity) of the three key sectors that make up the index. On a more positive note, the manufacturing sector grew at a faster pace in January.
January’s subdued result likely reflected the effects of seasonal factors related to the Lunar New Year, which usually leads to large changes in production in January and February.
On a monthly basis, industrial production declined 1.2% in January in seasonally-adjusted terms (December: +0.4% month-on-month), which marked the lowest figure in four months. Meanwhile, annual average growth in industrial production accelerated to 3.9% in January from December’s 3.8%.
Author: Luis Lopez Vivas, Economist