June industrial output growth likely slower
KUALA LUMPUR: Industrial output likely recorded a lower growth pace in June mostly due to base effects.
The Industrial Production Index (IPI) tracks activities in manufacturing, mining and electricity areas.
The Statistics Department will release the data today.
Standard Chartered Bank said growth might have eased, partly due to an unfavourable base effect.
The manufacturing sector has been the primary driver of industrial output, having increased by 6.2 per cent year-on-year.
“Electronics production has provided strong support for manufacturing activity, rising 9.1 per cent in the five months compared to 6.8 per cent during the corresponding period last year.”
Crude oil production rose in June versus May but remains slightly weak on a year-on-year basis.
“We remain cautious on the outlook for industrial activity, especially given that support has primarily stemmed from exportoriented industries rather than domestically oriented ones,” Standard Chartered said. Rupa Damodaran