Malaysia: Industrial output records quickest growth since February in December
Industrial output increased 1.7% compared to the same month of the previous year in December 2020, bouncing back from November’s 2.2% decrease and marking the best result in ten months. December’s upturn was chiefly driven by a stronger expansion in manufacturing output.
On a seasonally-adjusted monthly basis, industrial production rebounded, rising 3.9% in December (November: -0.9% s.a. mom), the best result since June. Moreover, the trend improved slightly, with the annual average variation of industrial production coming in at minus 4.2% in December, up from November’s minus 4.3% reading.
Commenting on December’s result Euben Paracuelles and Rangga Cipta, analysts at Nomura, stressed:
“This improvement was likely due to the relaxations of conditional movement control orders (CMCO) in most states in December and stronger exports. […] The improvement of IP growth in December will likely be temporary, given the re-imposition of lockdowns in mid-January.”