A broad-based slowdown in August weighed heavily by a fall in mining
Industrial Production Index (IPI) slowed to 4.1% YoY in August (Jul: 5.3%), lower than Bloomberg's consensus of 5.5%, but above the house estimate of 3.2%
- The slower growth was mainly due to a moderate increase in the manufacturing and electricity sectors' output and a continued decline in mining output, further impacted by a high base from last year.
- On MoM, growth rebounded by 1.7% (Jul: -1.5%), following a contraction in the previous month.
The manufacturing index slowed in August (6.5% YoY; Jul: 7.7%) amid lower output in both domestic and export-oriented sectors
- Domestic-oriented: moderated (7.1%; Jul: 7.5%) but remained relatively high. The slower growth was due to a slowdown in the output of tobacco products (15.3%; Jul: 23.4%). However, growth was supported by higher output in fabricated metal products, except machinery & equipment (10.3%; Jul: 9.1%), and motor vehicles, trailers & semi-trailers (7.7%; Jul: 3.9%).
- Export-oriented: moderated (6.3%; Jul: 7.8%), in line with a slight moderation in August's export growth (12.1%; Jul: 12.3%). This is partly due to a contraction in the manufacture of coke & refined petroleum products (-1.5%; Jul: 11.7%). However, the growth was partially mitigated by higher production in vegetable & animal oils & fats (22.6%; Jul: 21.9%), rubber products (11.1%; Jul: 10.5%), and computers, electronics & optical products (8.7%; Jul: 5.0%).
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