Aug IPI likely higher on strong exports
KUALA LUMPUR: The improved export number will likely boost industrial output in the country to an annualised 7.51 per cent in August.
According to economists polled by Business Times, the growth will likely be led by manufacturing.
The Statistics Department will release the details today.
Bank of America Merrill Lynch said exports are showing some modest recovery and this should translate into manufacturing readings.
The surge in the manufacturing Industrial Production Index (IPI) is likely to be due to base effects, said Citi.
"Motor vehicles production was likely weak - the Malaysian Automotive Association reported a decline in the number of passenger cars produced. It decreased to 5.0 per cent from 4.2 per cent in July."
Credit Suisse said the output increase comes on the back of an impressive export bounce for August.
Exports jumped a strong 12.4 per cent year-on-year in August, making it the highest export month so far this year.
Imports rose by 14.1 per cent while total trade expanded by 13.2 per cent to RM118.69 billion, surprising the market with a higher-than-expected trade surplus.