Stats Dept: Malaysia’s leading index up 5.3pc yoy in June 2022, signals economic growth confidence

Stats Dept: Malaysia’s leading index up 5.3pc yoy in June 2022, signals economic growth confidence

Malaysia’s leading index (LI) rebounded 5.3 per cent year-on-year (y-o-y)  to 111.7 points in June 2022. — Picture by Shafwan Zaidon

Thursday, 25 Aug 2022 1:47 PM MYT

KUALA LUMPUR, Aug 25 — Malaysia’s leading index (LI) rebounded 5.3 per cent year-on-year to 111.7 points in June 2022 after a rise of 2.3 per cent in May 2022 (111.3 points), said the Department of Statistics Malaysia (DoSM).

DoSM said the increase was mainly backed by the increment in real imports of other basic precious and other non-ferrous metals driven by the import of platinum-based metals and influenced by the low base effect from the previous year (June 2021: 106.1 points).

“Concomitantly, the monthly change of LI increased 0.4 per cent in the reference month attributed mainly by real imports of other basic precious and other non-ferrous metals (0.6 per cent) and the number of new companies registered (0.6 per cent),” it said in a statement today.

DoSM said that in June 2022, the LI which shows the ability to anticipate the future direction of the economy signals confidence towards further growth in the coming months through smoothed long-term trend index movements that are intact above 100.0 points.

“This is in line with the anticipated promising signs of strong domestic and export demand as well as the reopening of international borders amid slow global economic growth,” it said.

For the current economic scenario, the coincident index (CI) spiked 12.6 per cent y-o-y to record 121.5 points in June 2022 in tandem with the economic performance in the second quarter of this year where strong growth was recorded in June 2022, it said.

DoSM said furthermore, the CI registered 0.2 per cent month-on-month led by the increases in industrial production index (0.9 per cent), capacity utilisation in the manufacturing sector (0.7 per cent) and total employment in the manufacturing sector (0.2 per cent).

“The diffusion index for LI recorded 42.9 per cent in June 2022.

“At the same time, the diffusion index for CI remained at 100.0 per cent since December 2021 representing that all the CI components increased over the past six months,” it added.

The full publication of the Malaysian Economic Indicators: Leading, Coincident & Lagging Indexes, June 2022 can be downloaded through eStatistik portal. — Bernama