Malaysia: Industrial production growth moderates in December
February 9, 2018
Industrial production rose 2.9% from the same month of the previous year in December, decelerating from the 5.0% expansion recorded in November and marking the softest year-on-year expansion in over a year and a half. December’s figure also missed market expectations of 4.0% growth in the month.
According to the Statistical Institute, the moderation in factory output growth reflected a 4.1% decline in mining and quarrying production, which followed a meager 0.2% expansion in November. Other sectors fared somewhat better, with key manufacturing output growth softening to a still resilient 5.3% increase in December from a 6.7% rise in November and energy production growth unchanged in December at November’s 3.9%. Looking at the main manufacturing sub-sectors, output of electronics and petroleum, chemical, rubber and plastic products moderated from the previous month, while production of food, beverages and tobacco jumped 17.0% in December following 8.2% growth in November.
In month-on-month terms, industrial production shrank a seasonally-adjusted 1.3% in December, contrasting the 1.9% sequential increase recorded in the previous month. In light of December’s soft headline figure, annual average growth in industrial production slipped to 4.5% from 4.7% in November.
Author: David Ampudia, Economist