Malaysia: Industrial production reaches six-month low in July
September 10, 2012
In July, industrial production added only 1.4% over the same month last year, which was well below the 3.7% rise tallied in June and undershot market expectations that had industrial production rising 3.0%. In fact, the July print represented the lowest growth rate since January. According to the statistical office, the deceleration seen in July was mainly due to a sharp decline in the mining sector as well as a remarkable slowdown in electricity output. On the other hand, the manufacturing sector improved over the previous month. A month-on-month analysis corroborates the deterioration suggested by the annual figures, as industrial production dropped 4.7% in seasonally adjusted terms, which followed the 1.8% decline seen in June. Despite the slowdown in July, the trend continues to point upwards, with annual average growth in industrial production inching up from 3.2% in June to 3.3%.