Analysts expect higher industrial production

KUALA LUMPUR: Industrial output for February is on tap today and market expectations are for the Industrial Production Index (IPI) to improve.

Results of a NST Business poll expects the IPI to grow by seven per cent compared with a year ago, while Standard Chartered Bank expects the IPI to record 8.1 per cent growth.

“Manufacturing likely contributed significantly to headline IP growth as motor vehicle production rose 20.7 per cent yearon-year in February,” said Standard Chartered Asian Economic Research head Edward Lee.

Intermediate goods imports rose by an annualised 39.9 per cent, a seven-year high, indicating a pick-up in manufacturing activity.

“Mining may have supported headline growth as well, with crude palm oil production rising 20.7 per cent year-on-year.”

Malaysia’s exports rose 26.5 per cent in February, the fastest growth in 16 months, boosted by exports of energy-related products.

Electronics production likely continued its recent strong performance, further boosted by a favourable base effect.