April industrial output index up 4.6% year on year

PETALING JAYA: The Industrial Production Index (IPI) increased by 4.6% in April 2018 as compared with the same month of the previous year, supported by the increase in all indices manufacturing (5.3%), mining (1.8%) and electricity (5.8%), according to the Statistics Department.

The manufacturing sector output rose 5.3% in April after recording a growth of 4.1% in March 2018. The major subsectors which registered increases in April were electrical and electronic equipment products (6.6%); petroleum, chemical, rubber and plastic products (3%); and non-metallic mineral products, basic metals and fabricated metal products (4.7%).

The mining sector output recorded an increase of 1.8% in April compared to the same period of the previous year, due to an increase in the crude oil index ( 4.4%). Meanwhile, natural gas index decreased by 0.4%.

The electricity output increased 5.8% in April after recording an increase of 4.4% in March.

MIDF Research expects IPI to grow 4.3% in 2018, with an expansion of 3.5% to 4.5% in the second half of the year as guided by the recent Business Tendency Index data.

“Lower business cost partly due to moderating inflation, stable retail fuel prices and zerorated goods and services tax will provide additional supports for industrial production growth to hit 4.3% in 2018.”