Something is in the wind. US Purchasing Managers Indexes zoomed up in June, and lo and behold, Malaysia’s IPI is following suit (log annual and monthly changes; seasonally adjusted):
Mining is up 14.6% in annual log terms for July, no doubt due to higher average crude and gas prices (note however, that it’s down on a m-o-m basis). But manufacturing is climbing too, at 5.6%, and is also up on the month. Even Electricals and electronics output is turning around, something I did not expect to see (index numbers):
I hate extrapolating off one month’s worth of data, but what with the improvement in the external environment, it looks like the long doldrums endured in the export sector is finally starting to dissipate.
The impact on GDP ought to be just positive:
The IPI based forecast suggests 3Q2013 growth should come in at 4.8% (± 2%), accelerating from the 4.3% seen in 2Q. The weighted average forecast currently stands at 4.7% (± 1%).
July 2013 Industrial Production report from the Department of Statstics (warning: pdf link)