Malaysia: Industrial production growth cools in February
April 11, 2018
Industrial production expanded 3.0% over the same month of the prior year in February, moderating from January’s revised 5.4% expansion (previously reported: +3.0% year-on-year) and coming in just above market expectations of 2.9%. It should be noted that revisions to the January results are the result of a change in the base year from 2010 to 2015.
According to the Statistical Institute, a deceleration in manufacturing output growth led the slowdown. Manufacturing output expanded 4.7% annually compared with revised growth of 6.9% in January (previously reported: +4.8% yoy). Production growth in the all-important electrical and electronics segment moderated marginally, while output growth in the food, textiles and furniture sectors experienced more sizeable decelerations. Mining output swung from an expansion in January to a contraction in February, led by a drop in natural gas production. Meanwhile, petroleum and chemical production accelerated in February, while crude oil production posted softer growth.
On a month-on-month basis, industrial production shrank a seasonally-adjusted 4.4% in February, contrasting a revised 5.2% expansion recorded in January (previously reported: -1.0% month-on-month). Annual average growth in industrial production inched down from 4.5% in January to 4.4% in February.
Author: Lindsey Ice, Economist