Malaysia: Industrial output growth loses pace in March
Industrial output grew 3.1% in year-on-year terms in March, which was a moderation from February’s 3.5% increase. March’s figure was largely due to a deterioration in manufacturing production growth. In contrast, mining and quarrying production rebounded.
On a seasonally adjusted monthly basis, factory output was flat in March (February: +4.9% mom). Meanwhile, annual average industrial production growth fell to 6.3% in March (February: +6.5%). This signals a worsening trend in the industrial sector.
Analysts at the EIU commented on the outlook:
“We forecast a slowdown in output growth from the industrial sector from 6.7% in 2022 to 4.1% in 2023, owing to deteriorating business and consumer confidence in developed markets, which will dent overseas orders.”