Malaysia: Growth in industrial production picks up in July
September 7, 2018
Industrial output expanded 2.6% year-on-year in July, up from 1.1% in June. The result, driven by a broad-based pick up in production, was markedly above market expectations of 1.4% growth.
Manufacturing output expanded 5.2% over the same month a year ago in July (June: +4.5% year-on-year) on the back of robust growth in the production of electrical and electronic products; petroleum, chemical, rubber and plastic products; and transport equipment. While electricity output growth accelerated from 3.0% in June to 4.5% in July, production in the mining sector contracted sharply. In July, output in the mining sector dropped 5.9% (June: -9.4% year-on-year) due to a strong contraction in natural gas output.
In month-on-month terms, industrial production expanded 2.6% in July, contrasting the 1.0% contraction recorded in June. Annual average growth in industrial production, meanwhile, eased from 4.0% in June to 3.7% in July.
Author: Jan Lammersen, Economist