Malaysia: Industrial production moderates in January
Industrial production lost further momentum in January, with growth edging down to 0.6% in annual terms in January from 1.3% in December. The result underwhelmed market expectations of 0.8% growth. Consequently, average growth in industrial output edged down to 2.0% in January from 2.3% in December.
Industrial production was weaker across the board in January. Mining and quarrying output continued to contract in the month, albeit at a softer rate. Moreover, manufacturing production softened and electricity generation stagnated in January.
On a month-on-month seasonally-adjusted basis, industrial production flatlined in January, contrasting the 0.2% decline in December (previously reported: -0.4% month-on-month).
Looking ahead, deteriorating growth prospects in China due to the coronavirus pandemic is likely to depress Malaysia’s already frail industrial sector even further.