Malaysia: Industrial production increases in June, despite strong contraction in the mining sector
In annual terms, industrial output expanded 1.1% in June, decelerating markedly from 3.0% growth in May. The result, which was weighed down by a large contraction in the mining sector, was well below market expectations of 3.2% growth.
Manufacturing production expanded 4.5% year-on-year in June, picking up pace somewhat from the previous month’s 4.1%. It was spearheaded by increased production of electrical and electronic equipment products; petroleum, chemical, rubber and plastic products; and non-metallic mineral products, basic metals and fabricated metal products. Activity in the electricity sector, meanwhile, increased to 3.0% in June from 2.6% in May. Output in the mining sector, however, contracted at a much sharper rate in June: Production fell 9.4% over the same month a year ago, compared to May’s 0.5% drop. This was due to a weak performance across-the-board, and the mining sector was especially affected by a fall in output of natural gas and crude oil, and a double-digit contraction in natural gas production.
Compared to the previous month, industrial output fell 1.0% in June, contrasting May’s marginal 0.2% expansion. Annual average growth in industrial production, meanwhile, moderated from 4.2% in May to 4.0% in June.