KUALA LUMPUR: The industrial production index (IPI) rose 5.0% in June 2024, following a growth of 2.4% in the preceding month, sustaining a positive momentum for six consecutive months.
Factory output was expected to grow by 4%, according to a Reuters poll.
In a statement, the Statistics Department (DOSM) said the output growth in manufacturing led the way, with an increase of 5.2% coupled with the turnaround to 4.9% in the production of the mining sector. The electricity sector rose by 3.5%.
In comparison to the previous month, the IPI went up by 4.8% compared to 3.5% recorded in May 2024.
DOSM said the rise of 5.2% in the manufacturing sector in June 2024 was primarily reinforced by expansion in export-oriented industries at 5.4%, marking the highest growth since September 2022.
The department said the performance in the export-oriented industries was in tandem with a positive growth in the country's manufactured goods exports in June 2024 (6.4%). On a month-on-month comparison, the export-oriented industries rose 11.8%.
Meanwhile, the domestic-oriented industries grew modestly by 4.6% as against the 6.4% recorded in May 2024.
DOSM said the slower growth was attributable to a decline of 10.7% in the manufacture of motor vehicles, trailers & semi-trailers, and a moderation in the manufacture of food processing products to 3.9%.
Additionally, there was an increase in the production of manufacturing output related to construction activities namely the manufacture of fabricated metal products, except machinery & equipment (12.6%); the manufacture of other non-metallic mineral products (8.9%); and the manufacture of basic metals (8.0%); hence cushioning the impact.
In comparison with May 2024, the domestic-oriented industries slipped by 5.4%, contrasting with the positive growth of 2.3% in the previous month.
The output in the mining sector increased by 4.9% in June 2024, reversing a decline of 6.9% recorded in the previous month.
“Looking at the performance of several countries, the IPI was positive in China, South Korea, Taiwan, Vietnam, and the United States. Conversely, Singapore, Thailand and Japan experienced a decline in IPI in June 2024,” DOSM said.
“For the second quarter of 2024, the IPI advanced further by 4.5% as against 3.3% recorded in the first quarter of 2024. The uptick was driven by the manufacturing sector at 4.9% (1Q24: 2.1%),” it said.
Meanwhile, the IPI for mining and electricity sectors grew modestly by 2.4% (1Q24: 5.9%) and 5.3% (1Q24: 9.1%) respectively. The IPI dropped by 1.2% as against the first quarter of 2024, influenced by a decline in the mining sector.
