June in­dus­trial out­put growth likely slower

New Straits Times - - Business -

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

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