Malaysian economy to continue to grow in Q3
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Malaysia’s economy is poised to continue to grow in the third quarter of the year, according to the Department of Statistics.
The Leading Index (LI), which monitors the economic performance in average of four to six months ahead, saw an annual change of 0.3% against 1.8 % in the previous month.
On a monthly basis, the LI contracted 0.5%, mainly attributable to the deceleration in the number of housing units approved by 0.7%.
Meanwhile, the Coincident Index (CI), which examines the current economic activity, rose 0.6 % in March 2018 on the back of the increase in real contribution to EPF (0.4%), volume index of retail trade (0.3%), total employment in manufacturing sector (0.2%) and real salaries & wages in manufacturing sector (0.1%).
The annual change of CI stepped up to 3.4% in the reference month as compared with 3.1% in February 2018.
Meanwhile, the Diffusion Index for CI remained at 66.7% since January 2018, while the Diffusion Index for LI was below 50% for two consecutive months.
Questions & Answers
Q.What is the primary indicator suggesting continued economic growth in Malaysia for the third quarter?
What is the primary indicator suggesting continued economic growth in Malaysia for the third quarter?
The Department of Statistics indicates that Malaysia's economy is set to grow in the third quarter. This outlook is supported by the Leading Index, which monitors economic performance several months in advance, showing an annual change of 0.3%.
Q.What factors contributed to the rise in the Coincident Index in March 2018?
What factors contributed to the rise in the Coincident Index in March 2018?
The Coincident Index increased due to several factors. These included a 0.4% rise in real contribution to EPF, a 0.3% increase in the volume index of retail trade, and growth in both total employment and real salaries in the manufacturing sector.
Q.How has the monthly performance of the Leading Index changed recently?
How has the monthly performance of the Leading Index changed recently?
On a monthly basis, the Leading Index contracted by 0.5%. This deceleration was mainly attributed to a 0.7% decrease in the number of housing units that were approved during that period.
Q.What was the annual change in the Coincident Index for the reference month?
What was the annual change in the Coincident Index for the reference month?
The annual change in the Coincident Index for the reference month increased to 3.4%. This represents a step up from the 3.1% recorded in February 2018, indicating stronger current economic activity.
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