IPI up 12.1% year-on-year in June, better than forecast

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KUALA LUMPUR: The Industrial Production Index (IPI) increased 12.1% in June 2022 as compared to the same month of the previous year, exceeding the forecasts by Reuters.

According to 12 economists surveyed in a Reuters poll, June’s IPI was expected to rise by 4.9%.

In a statement, the Statistics Department (DOSM) said the manufacturing output component rose 14.5%, the electricity sector increased 14.1% and the mining segment grew 2.1%.

“The IPI for the second quarter of 2022 grew 6.9% as compared to the same period of the previous year. The increase was attributed to the growth in the manufacturing index (9.3%) and the electricity index (5.8%). Meanwhile, mining index contracted 1.1%,” it said.

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On a year-on-year (YoY) basis, the manufacturing sector output increased by 14.5% in June 2022 after recording a growth of 6.9% in May 2022.

The main subsectors that contributed to the growth in the manufacturing sector in June 2022 were transport equipment & other manufacturing products (89.9%), electrical & electronics (16.9%) and non-metallic mineral products, basic metal & fabricated metal products (25.1%).

The mining sector output rose 2.1% in June 2022 as compared to the same period of the previous year. The growth was spearheaded by the increment of 5.5% in the natural gas index. Meanwhile, the crude oil and condensate index declined 2.4%.

“The IPI in the period of January to June 2022 recorded an expansion of 5.7% as compared to the same period of the previous year. This increment was supported by the manufacturing index (7.8%) and electricity index (4.7%) while the mining index shrank 1.4%,” DOSM said.