October industrial output growth slows to 10-month low
Industrial Production Index (IPI) moderated for the third straight month to 2.1% YoY (Sep: 2.3%), the weakest growth in 10 months and below house and consensus forecast of 2.6%
- Slower growth stemmed from persistently weak mining output and moderate electricity output growth. However, modest expansion in manufacturing output partially offset the slowdown.
- On MoM, growth rebounded to 1.7% (Sep: -0.7%).
Manufacturing index expanded slightly (3.3% YoY; Sep: 3.2%), driven by a recovery in domestic-oriented sectors
- Domestic-oriented: Growth improved (3.3%; Sep: 2.7%) supported by higher food processing output (4.5%; Sep: 3.5%). However, gains were limited by modest growth in fabricated metal products, except machinery & equipment (6.5%; Sep: 9.9%) and other non-metallic mineral products (5.2%; 6.6%).
- Export-oriented: Growth moderated slightly (3.3%; Sep: 3.4%) but remained steady, in line with a rebound in October's exports (1.6%; Sep: -0.6%). Higher production of vegetable & animal oils & fats (12.7%; Sep: 3.0%), and rubber products (10.9%; Sep: 8.6%) contributed positively. Nevertheless, weaker output in computer, electronics & optical products (2.9%; Sep: 5.9%) partially dampened momentum.
- MoM (-1.2%; Sep: -1.1%): declined for the second month, tracking seasonal trends since 2022.
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