Economic slowdown between Sept and Nov, says Statistics Dept

The Statistics Department has cautioned that Malaysia’s economy is expected to grow slower in the next four to six months, between September and November.

In May 2018, Chief Statistician Datuk Seri Dr. Mohd Uzir Mahidin said the monthly change of the LI showed a negative growth of 1.1% to 117.8 points, from 119.1 points recorded in April 2018. 

KUALA LUMPUR: The Statistics Department has cautioned that Malaysia’s economy is expected to grow slower in the next four to six months, between September and November.

This follows an earlier comment by Finance Minister Lim Guan Eng, who on Friday (July 20) had said Malaysia’s economy will slow to 5% in 2018, from an earlier projection of between 5.5% and 6%, as the nation readies itself in the brewing trade spat between US and China.

“The economy is anticipated to expand at a slower rate between September to November 2018, based on the performance of Leading Index (LI),” Chief Statistician of Malaysia, Datuk Seri Dr. Mohd Uzir Mahidin, said in a statement on Monday.

“The LI indicators are designed to observe the economic performance in the short term,” he added.

In May 2018, Mohd Uzir said the monthly change of the LI showed a negative growth of 1.1% to 117.8 points, from 119.1 points recorded in April 2018.

The annual change of the LI had also registered a 0.7% decrease in the same month, as against 1.4% in April 2018, he added.

“This was mainly due to the 0.5% decreased in the number of new companies registered,” he added.

On the same note, the Statistics Department reported that the Coincident Index (CI), which reflects the current economic activity, had improved in May 2018.

“The CI posted a growth of 0.3% in the reference month. The Volume Index of Retail Trade (0.5%) and Real Salaries & Wages in Manufacturing sector (0.2%) were the components that accounted to the increase,” the department added, noting that the annual change of the CI had risen 2.2% in May 2018.

Meanwhile, the Statistics Department said the diffusion index for the CI remained at 66.7% since January 2018.

“Nevertheless, the level of Diffusion Index for LI was below 50.0% (14.3%),” it added.

Source: The Edge Markets

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