Malaysia: Industrial output records lowest expansion since September 2021 in December
Industrial output increased 3.0% year on year in December (November: +4.8% yoy). December’s figure marked the worst reading since September 2021. The deterioration largely reflected a slowdown in manufacturing and mining and quarrying output.
On a monthly basis, industrial output declined 2.3% in seasonally adjusted terms in December, contrasting November’s 2.6% expansion. Meanwhile, annual average industrial production growth fell to 6.9% in December (November: +7.1%), signaling a worsening trend in the industrial sector.
Analysts at the EIU commented on the outlook:
“Industrial activity will lose steam in the first quarter because of closures around the Lunar New Year period in Malaysia and China and a dip in overseas orders following a boom in Christmas-related shipments in October–December. However, the slowdown will intensify over the course of the year owing to deteriorating business and consumer confidence in developed markets, which will dent overseas orders.”