February industrial output below survey as mining slips

KUALA LUMPUR: Malaysia's industrial output, as measured by the industrial production index (IPI) grew at a slower pace of 3% in February, which was below a Bloomberg survey of 3.3% increase.

The Statistics Department said on Wednesday the expansion in February was supported by the positive growth in the manufacturing index (4.7%) and the electricity index  (2.8%). 

However, the mining index recorded a decline of  1.6%. 

The IPI in January 2018 was revised to 5.4% year-on-year.

The department said that on a yearly basis, manufacturing sector output grew by  4.7%t in February 2018 after a strong growth of 6.9% in January. 

The main sub-sectors which recorded increases in February 2018 were: petroleum, chemicals, rubber and plastics products (7.0%); electrical and electronic equipment products (5.4%); and non-metallic mineral products, basic metal and fabricated metal products (5.0%).

The mining sector output fell by  1.6% in February 2018 (January 2018: 1.5%). 

“The decline was due to the decrease in the natural gas index (-3.5%). Meanwhile, the Crude Oil index rose by  0.5%,” it said.

The department said electricity output increased by 2.8% in February 2018 on yearly basis.