Malaysia’s industrial production rises year-on-year on increase in mining output

Malaysia’s industrial production rose during the month of June, compared to a year earlier period and remaining above what markets had earlier expected, led by a surge in electricity generation and mining output, official data showed.

The industrial production index-a measure of output from factories, power plants, and mines rose 5.3 percent in June from a year earlier, data released by the Department of Statistics showed Thursday. That compares to the median 2.5 percent rise predicted by economists and May's 2.8 percent y/y increase. On a seasonally adjusted month-on-month basis, the index gained 2.9 percent in May.

The country's key manufacturing activities expanded 4.7 percent year-on-year in June while the electricity production rose 8.7 percent. Mining output gained 6.3 percent from a year earlier. On a seasonally adjusted month-on-month basis, the manufacturing index was up 2.2 percent in June while the mining sector climbed 4.4 percent. However, the electricity component contracted 3.1 percent from May.

Another report from the statistical office showed that the manufacturing sales value advanced 2.9 percent in June from a year ago. Total employees in manufacturing slid 0.1 percent, while salaries and wages gained 5 percent.

Meanwhile, Malaysia's economic growth pace has decelerated in the recent quarters. The economy expanded 4.2 percent in the first quarter, its slowest rate since 2009, prompting the central bank in the third-largest Southeast Asian economy to cut the benchmark policy interest rate in July for the first time in two years to bolster growth.