Malaysia: Industrial production surges to over two-year high in February
Industrial production rebounded sharply in February, with growth accelerating to 5.8% year-on-year. The result was above the 0.6% increase logged in January and marked the best performance since August 2017. February’s robust output also surpassed market expectations of 1.9% growth. Consequently, average growth in industrial output rose to 2.4% in February from 2.0% in January.
Industrial production was stronger across the board in February. Mining and quarrying output and electricity generation rebounded sharply in the month, while manufacturing production picked up pace.
On a month-on-month seasonally-adjusted basis, industrial production grew 3.2% in February, up from January’s flat reading. This was the strongest month-on-month gain in over six-and-a-half years.
Looking ahead, a deteriorating outlook for the Malaysian economy and a weakening Chinese economy is likely to depress Malaysia’s industrial sector.