KUALA LUMPUR: The industrial production index (IPI) rose by 4.1% year-on-year (YoY) in August 2024, which is below expectations.
According to a Reuters poll, factory output had been forecast to expand by 5.4%.
“The IPI moderated to 4.1% in August 2024, as compared to an increase of 5.3% in the preceding month. The increase was primarily supported by the expansion of the output in the manufacturing sector at 6.5% followed by the positive growth of 4.1% in electricity output,” Statistic Department (DOSM) chief statistician Datuk Seri Dr. Mohd Uzir Mahidin said in a statement.
He noted that the output of the mining sector continued to decline year-on-year for two consecutive months, by recording a negative 6.4% in August 2024.
On a month-on-month comparison, the IPI rebounded to 1.7%, after declining by 1.5% in the previous month.
DOSM said the increase in manufacturing output in August 2024 was supported by the production in export-oriented industries, which softened to 6.3% growth as against 7.8% recorded in July 2024.
“The output growth for the mining sector eased further to negative 6.4% in August 2024, significantly influenced by the decrease in natural gas and crude oil & condensate productions, which both recorded YoY growth at negative 7% and negative 5.7% during the month, respectively,” Mohd Uzir said.
He added that the mining index continued to shrink on a month-on-month basis at 6.9%.
Meanwhile, the generation of electricity remained to increase YoY by 4.1% in August 2024. Based on the monthly comparison, the electricity index dropped by 2%.
On a global scale, the IPI for several other countries including Singapore, the US and Taiwan experienced higher output growth in August 2024, while China, South Korea and Vietnam continued to grow but slower than the growth recorded in the preceding month.
Cumulatively, throughout the first eight months this year (January – August 2024), the IPI picked up by 4.1% as compared to the same period in 2023, with all sectors posting an expansion, namely the mining index (1.8%); manufacturing index (4.4%); and electricity index (6.7%).
