Malaysian industrial production jumps in November, beats market expectations

Malaysia November industrial production rose at a higher-than-expected pace, as manufacturing output and electricity generation streamed.

Industrial production jumped by 6.2 percent y/y in November, higher than market expectation of 5.5 percent and up from 4.2 percent in September.

The improvement was a broad-based with all key sectors (manufacturing, mining and electricity) clocking stronger pace of expansion. A turnaround in external demand, led by the stronger consumption growth in the US, recovery in oil prices, as well as a pick-up in domestic investment are some of the key factors that lifted industrial output, reported DBS Group Research.

The stronger industrial production data will improve the odds for the fourth quarter of 2016 GDP growth to beat the 4.1 percent average seen in the first three-quarters. As long as IPI continues to march north in December, we remain confident in our long-held GDP growth forecast of 4.2 percent for 2016.