May output growth slows on base effect, but held up by manufacturing recovery
Industrial Production Index (IPI) moderated 2.4% YoY in May (Apr: 6.1%), lower than expectations (KIBB: 3.0%; consensus: 3.6%)
- The slower growth was weighed down by weak mining output but partially offset by gains in the manufacturing and electricity sectors. Additionally, the high base effect from last year contributed to the slower growth rate.
- On MoM, it rebounded by 3.5% (Apr: -7.6%) following a sharp decline in the previous month.
The manufacturing index moderated slightly in May (4.6% YoY; Apr: 4.9%) partly due to the high-base effect
- Domestic-oriented: slowed (6.4%; Apr: 9.5%) due to a broad-based slowdown, but remained supported by output of motor vehicles, trailers & semi-trailers (10.3%; Apr: 20.2%), followed by other non-metallic mineral products (9.8%; Apr: 11.2%) and fabricated metal products, except machinery & equipment (6.5%; Apr: 12.8%), albeit at a slower pace. Notably, output of other transport equipment (6.6%; Apr: 3.6%) and repair & installation of machinery & equipment (5.2%; Apr: 4.1%) registered a growth expansion.
- Export-oriented: expanded (3.7%; Apr: 2.6%) for the third straight month, led by a significant rebound in output of computer, electronics and optical products (8.4%; Apr: -1.4%) and followed by an increase in manufacture of vegetable and animal oils and fats products (4.8%; Apr: 2.7%).
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