KUALA LUMPUR: Industrial output has probably slowed to 5.9 per cent in August from 6.1 per cent in July.

The Statistics Department will release the Industrial Production Index (IPI) data tomorrow.

Moody's, in a report, described manufacturing as doing well on the back of solid global tech demand and this was captured in the electrical and electronics (E&E) category.

"Stronger global demand for Malaysia tech components is flowing through improved domestic demand."

For instance, total employees engaged in manufacturing rose 2.9 per cent year-on-year in July and wages and salaries climbed by an impressive 11.3 per cent.

The near-term outlook has softened too, it added.

The Nikkei-Markit manufacturing Purchasing Managers' Index (PMI) dipped to 49.9 in September, from 50.4 in August, falling back below the neutral 50 that separates contraction from expansion.

"New business was down for a fifth straight month amid cooler domestic and foreign demand."

INDUSTRIAL OUTPUT FORECAST FOR AUGUST 2017

( per cent year-on-year)

HSBC BANK 5.9

MAYBANK INVESTMENT BANK 6.2

KENANGA INVESTMENT BANK 5.8

UOB BANK 5.8

AVERAGE 5.92

148 reads