KUALA LUMPUR: The industrial production index (IPI) rose by 2.3% year-on-year (YoY) in September 2024, falling short of expectations, after a 4.1% increase in the previous month.
According to a Reuters poll, factory output had been forecast to expand 3.7%.
In a statement, the Statistics Department (DOSM) said the output growth in manufacturing led the way, rising by 3.2% (August 2024: 6.5%) coupled with the electricity sector which rose by 3.9 per cent (August 2024: 4.2%).
“The production of the mining sector continued to decline for the third consecutive month, recording negative 2.2 per cent (August 2024: -6.4%). In comparison to the previous month, the IPI fell by 0.7% compared to 1.7% recorded in September 2024,” chief statistician Datuk Seri Dr. Mohd Uzir Mahidin said.
The rise in output of the manufacturing sector in September 2024 was primarily driven by expansion in export-oriented industries at 3.4%, slower than the 6.3% recorded in the preceding month.
DOSM said production growth was mainly driven by steady increases in rubber product manufacturing, followed by computer, electronics, and optical product manufacturing.
“The output in the mining sector shrank by 2.2% in September 2024. The decline was primarily influenced by crude oil & condensate production, which declined further to 11.4% offset by a rebound in natural gas production which grew by 4.5% during the month.
“Meanwhile, the generation of electricity grew by 3.9% YoY in September 2024. Compared to August 2024, the mining index rose by 2.8% while the electricity index dropped by 3.8%,” Mohd Uzir said.
Looking at the performance of several countries, the IPI had positive growth in China, Singapore, Vietnam, and Taiwan.
Conversely, the United States, South Korea, Thailand and Japan experienced a decline in IPI in September 2024.
In the third quarter of 2024, the IPI rose by 3.9%, compared to 4.5% in the second quarter. This increase was driven by the manufacturing sector, which grew by 5.8%, up from 4.9% in the previous quarter.
The IPI for the mining sector declined by 4.6%, while the electricity sector grew by 5.1%. Quarter-on-quarter, the IPI rose by 3.7%.
In the first nine months of this year, the IPI rose by 3.9%, with all sectors showing growth: the mining index increased by 1.4%, the manufacturing index by 4.3%, and the electricity index by 6.4%.
