Growth slows to 5.3% but still above market expectations
The Department of Statistics (DOSM) 3Q24 advance GDP report shows growth slowed to 5.3%, easing after a strong 5.9% expansion in 2Q24 (1Q24: 4.2%)
- The advance growth estimate matches our house projection and slightly exceeds Bloomberg’s consensus of 5.1%. The 20 estimates range from 4.3% to 5.8%.
- On a quarterly basis, growth accelerated to 4.6% (2Q24: 0.8%). The actual 3Q24 GDP results, including a detailed breakdown of demand and supply, will be released on November 15.
Slower growth due to a modest expansion in services and agriculture sectors, exacerbated by weakness in mining. However, this was partially offset by strong expansion in manufacturing and construction:
- The services sector slowed to 5.6% (2Q24: 5.9%), with contributions from all sub-sectors, led by wholesale & retail trade, transportation & storage, and business services.
- The manufacturing sector climbed to 5.7% (2Q24: 4.7%), an eight-quarter high, marking three consecutive quarters of expansion. Growth was driven by increased production of electrical, electronic & optical products, petroleum, chemical, rubber & plastic products, and non-metallic mineral products, basic metal & fabricated metal.
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