Highlight Malaysia's March IPI up 4.3% y-o-y, falls 2.6% m-o-m

by **Cals** Tue 13 May 2014, 01:20

Highlight Malaysia's March IPI up 4.3% y-o-y, falls 2.6% m-o-m

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Monday, 12 May 2014 12:21

KUALA LUMPUR (May 12): Malaysia's industrial output, as measured by the industrial production index (IPI), beat forecasts to rise 4.3% in March 2014 from a year earlier. The IPI had risen on larger manufacturing and electricity output, while mining production fell.

In a statement today, the Statistics Department said the IPI's manufacturing and electricity components rose 6.4% and 4.6% respectively.The mining gauge declined 0.9%.

A Reuters poll of 14 economists had forecast factory output would grow 4.1 percent, restrained by slower shipments of electrical and electronics goods.

"On a yearly basis, manufacturing output expanded by 6.4% in March 2014 following an increase of 9.9% (revised) in February 2014. The sub-sectors which registered higher output gains in March 2014 were: electrical and electronics products (16.9%); petroleum, chemical, rubber and plastic products (1.7%) and food, beverages and tobacco (5.0%).

"Output of the mining sector fell 0.9% in March 2014 as compared to the same month in 2013 due to the decrease in crude oil index (1.5%) and natural gas index (0.4%)," the department said.

In monthly terms, March IPI fell 2.6% from February on lower manufacturing and electricity output while mining production came in higher.

In February, the IPI expanded 6.7% from a year earlier, according to the department.

Cumulative first quarter (1Q14) IPI rose 4.8% from a year earlier as the manufacturing and electricity segments expanded 7% and 4.3% respectively. The mining component, however, fell 0.5%.

On a quarterly basis, 1Q14 IPI fell 3.1% from the preceding 4Q13 as all components of the index declined.