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Malaysia’s Dec 2022 leading index down, near-term growth to ease
KUALA LUMPUR: Malaysia’s leading index (LI) decreased 0.6 per cent year-on-year (y-o-y) to 110.7 points in December 2022 against 111.4 points in December 2021, in anticipation that near-term growth momentum would ease, the Department of Statistics Malaysia (DoSM) said.
The LI is used to predict economic upturns and downturns an average of four to six months ahead.
In a statement today, chief statistician Datuk Seri Dr Mohd Uzir Mahidin said four out of seven components were associated with the reduction, namely, the number of housing units approved, the number of new companies registered, Bursa Malaysia industrial index and expected sales value in the manufacturing sector.
“On the other hand, the LI’s monthly performance recorded an increase of 0.2 per cent in December 2022 when compared to 0.8 per cent in the previous month.
“This trend was driven by the Bursa Malaysia industrial index (0.5 per cent), real imports of other basic precious and other non-ferrous metals (0.1 per cent), the number of housing units approved (0.1 per cent) and expected sales value, manufacturing (0.03 per cent),” he said.
DoSM said the smoothed long-term trend of LI in December 2022 remained below the trend of 100.0 points.
Accordingly, Malaysia’s economy is expected to ease in the next few months in line with the International Monetary Fund’s expectations for global economic growth, it added.
DoSM said as for the current economic position, the coincident index (CI) recorded a rise of 5.1 per cent y-o-y to 120.3 points in December 2022 (December 2021:114.5 points).
However, tthe CI monthly change recorded a decrease of 0.2 per cent, as reflected by the industrial production index, volume index of retail trade, capacity utilisation, manufacturing and real contributions in the Employees Provident Fund, it said. – Bernama
Source: https://www.thestar.com.my/business/business-news/2023/02/24/malaysia039s-dec-2022-leading-index-down-near-term-growth-to-ease