Malaysia: Industrial output contracts amid lower crude and natural gas production
July 11, 2011
In May, industrial production contracted 5.1% over the same month last year, which represented the second consecutive decline and the sharpest drop since October 2009. The reading was below the revised 1.7% decrease recorded in April (previously reported: -2.2% year-on-year) and was even worse than expectations that had seen industrial output retreating 2.7%. The decline in industrial output mainly reflected the partial shutdown of Petronas' gas and crude production facilities for maintenance services, as well as the impact of global supply chain disruptions in the wake of Japan's Tohoku earthquake. In May, the mining sector dropped 20.2%, while manufacturing, which accounts by nearly two thirds of total output, grew a sluggish 0.6%. Owing to the sharp decline, the annual average growth in industrial production slowed further from 4.4% in April to 3.0% in May, the lowest level in the last year.