KUALA LUMPUR, Aug 8: Malaysia’s June industrial output rose 8.6 per cent from a year ago but showed an almost equally sharp downturn from May, the Statistics Department said on Friday.

In June, manufacturing sector output rose 8.7 per cent from a year earlier, electricity 10 per cent and mining 5.2 per cent, it said in a statement.

However, in June industrial output shrank 8.1 per cent from May as all three sectors slumped, with manufacturing down 9.8 per cent, electricity down 2.6 per cent and mining 2.3 per cent, it said.

The Statistics Department offered no commentary on the June figures but economists noted production figures for April and May had been revised downwards.

May’s industrial production index (IPI) rose 11.2 per cent year-on-year, instead of 16.2 per cent originally, while manufacturing expanded 9.6 per cent, instead of 15.9, said Azrul Azwar, economist with MIDF SISMA Securities.

“The Malaysian manufacturing sector has proven to be rather resilient despite all the misfortunes suffered in the first half,” he said.

“But manufacturers may have decided to slow down the production trend in June because of strong growth in past two months and they did not want to balloon the inventory.”

Azrul said he maintained his growth forecast of 3.0-3.5 per cent for the Malaysian economy this year, lower than the official 4.5 per cent target.

In the second quarter to June, the IPI was up 8.7 per cent from a year ago and 4.8 per cent higher than the first quarter, supported by growth in all sectors, the department said.

For the first half of the year, the IPI rose 8.0 per cent year-on-year, it added.

Malaysia’s industries are recovering from the twin blows of the Iraq war and the deadly outbreak of Severe Acute Respiratory Syndrome after the government announced a 7.3 billion ringgit ($1.92bn) economic stimulus package in May.—AFP