Malaysia's latest economic index shows sign of recovery in H2


FE Team | Published: August 24, 2020 14:12:03 | Updated: August 26, 2020 15:10:53


File photo (Collected)

Malaysia's leading index grew at a faster pace in June, rising 4.5 per cent year on year, signaling an economic recovery in the second half, said its statistics department Monday.

Malaysian Statistics Department said in a statement that the leading index also recorded 3.7 per cent in June as against the previous month, supported mainly by the number of new companies registered and real imports of other basic precious and other non-ferrous metals.

The government agency said the leading index showed a better signal of economic direction as the economic sectors were allowed to resume operations while adhering new normal starting June 10 with the implementation of Recovery Movement Control Order, reports Xinhua.

"Despite a deep contraction of Gross Domestic Products in the second quarter, the leading index is expecting an economic recovery in the second half, in line with the open up of more economic activities and no second wave of outbreak in mind," it said.

Meanwhile, the coincident index which measures the overall current economic performance, decreased 3.1 per cent year-on-year.

On a monthly basis, the index rose 8.7 per cent primarily driven by capacity utilization in the manufacturing sector and industrial production index.

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