IPI up 2.4% in March 2024 but below forecast

KUALA LUMPUR: The industrial production index (IPI) rose 2.4% year-on-year (YoY) in March 2024, below expectations.

According to 15 economists surveyed in a Reuters poll, March's factory output had been forecast to expand 2.5%.

“The IPI remained positive albeit at a slower rate of 2.4% in March 2024 as compared to 3.1 per cent in the preceding month. The increase was spearheaded by the expansion in the Manufacturing sector which grew by 1.3%, up from

1.2% in February 2024,” chief statistician Datuk Seri Dr. Mohd Uzir Mahidin said in a statement.

The mining and electricity sectors registered growth of 4.9% (February 2024: 8.1%) and 7.8% (February 2024: 10.9%) respectively. In comparison with the preceding month, the IPI turned around to 7.5%, contrasting with the negative 6.3% recorded in the previous month.

Mohd Uzir said in March 2024, the export-oriented industries rebounded to 0.5% from negative 0.2% in February 2024. This upturn was primarily led by the Manufacture of computer, electronics and optical products; and the manufacture of coke & refined petroleum products which registered increases of 2.0% and 1.9% respectively.

Furthermore, the manufacture of furniture experienced a notable surge of 12.6% during the month.

Additionally, the export-oriented industries’ growth reflects the performance of the country's manufactured goods exports, which regained momentum in March 2024.

In a month-on-month comparison, the export-oriented industries augmented by 11.0% as against the negative 5.8% in February 2024.

Meanwhile, the domestic-oriented industries grew modestly by 3.1% as against 4.1% in February 2024.

The electricity output expanded by 7.8% in March 2024 after registering an increase of 10.9% in the preceding month.

“The IPI advanced further by 3.3% YoY as compared to 0.8%recorded in the fourth quarter of 2023. The expansion was supported by the acceleration registered in the mining sector by 5.9% and the electricity sector by 8.9%,” Mohd Uzir said.

The manufacturing sector turned upward to 2.1% from the negative 0.2% posted in the previous quarter. In a quarter-on-quarter comparison, the IPI dropped by 1.0% influenced by the manufacturing sector at negative 1.8%.

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