MAY­BANK IB EX­PECTS 5PC GROWTH IN Q1

Sur­prise on the up­side seen

New Straits Times - - Business - May­bank In­vest­ment Bank Bhd

RUPA DAMODARAN

KUALA LUMPUR ru­pa­banerji@me­di­aprima.com.my

MAY­BANK In­vest­ment Bank Bhd (May­bank IB) ex­pects Malaysia’s first quar­ter gross do­mes­tic prod­uct (GDP) to pick up pace and grow by around 5.0 per cent from 4.5 per cent in the fourth quar­ter of last year.

Faster growth in man­u­fac­tur­ing pro­duc­tion and ser­vices in­dex, to­gether with the pick-up in value of con­struc­tion works done, have lifted the level of eco­nomic ac­tiv­i­ties in the first three months of the year.

Bank Ne­gara Malaysia gov­er­nor Datuk Muham­mad Ibrahim will re­lease the data on Fri­day.

May­bank IB yes­ter­day said on the ba­sis of the sup­ply-side in­di­ca­tors, Q1 real GDP growth might sur­prise on the up­side. “Crude palm oil and palm oil­re­lated out­put re­bounded sharply by 18 per cent and its high cor­re­la­tion with agri­cul­ture sec­tor GDP im­plies the lat­ter re­bounded in the first quar­ter af­ter four quar­ters in the red.

“The value of con­struc­tion works done was up by 9.7 per cent, sig­nalling faster growth trends in the con­struc­tion sec­tor’s GDP.”

It also noted that on the do­mes­tic de­mand side, con­sumer spend­ing growth ap­peared sus­tained

The value of con­struc­tion works done was up by 9.7 per cent, sig­nalling faster growth trends in the con­struc­tion sec­tor’s GDP.

as per re­tail trade in­dex growth at 7.8 per cent.

The surge in im­ports of cap­i­tal goods in­di­cate strong pick-up in real gross fixed cap­i­tal for­ma­tion.

“‘Flat­tish’ to­tal govern­ment ex­pen­di­ture growth at 0.5 per cent af­ter the fourth quar­ter’s -12.3 per cent sug­gested real pub­lic ex­pen­di­ture sta­bilised last quar­ter af­ter the con­trac­tions in the third and fourth quar­ters,” May­bank IB added.

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.