Malaysia: Industrial output grows at slowest pace in 12 months
December 9, 2010
In October, industrial production grew 3.0% over the same month last year, which represented the slowest pace of expansion since November 2009 and was below the 5.6% increase recorded in September. Nonetheless, the reading overshot market expectations, which had industrial output rising only 2.1%. The deceleration was the result of a decline in mining output along with a deceleration in manufacturing production. Mining output contracted 1.1% over the same month last year (September: +1.7% year-on-year), while manufacturing production, which accounts for nearly two thirds of total industrial output, moderated to a 4.5% increase (September: +7.5% yoy). Only electricity generation improved, accelerating from a 3.1% increase in September to a 5.0% expansion in October. Despite October's weak reading, the trend in industrial production continues to point upwards, with annual average growth in industrial production rising from 7.1% in September to 7.3% in October.