KUALA LUMPUR (Nov 8): Malaysia’s industrial output rose slower than expected in September, as manufacturing activity and electricity generation growth eased, while mining production contracted, official data on Friday showed.

The industrial production index — which measures output from factories, mines, and power plants — rose 2.3% in September from a year earlier, the Department of Statistics Malaysia (DOSM) said. That compares with a median 3.5% increase predicted in a Bloomberg survey and August’s 4.1% year-on-year gain.

On a month-on-month basis, the index fell 0.7% in September.

The growth of industrial production in September was “modest”, chief statistician Datuk Seri Dr Mohd Uzir Mahidin commented in a statement.

The latest reading nevertheless was in line with trends in China, Singapore, Vietnam, and Taiwan. However, industrial production declined in the US, South Korea, Thailand and Japan over the same month.

On a year-on-year basis, the key manufacturing sector expanded 3.2% in September, compared with a 6.5% increase in August. The electricity index climbed 3.9%, lower than August’s rate of 4.2%. Meanwhile, the mining sector declined for the third consecutive month, down 2.2% in September.

Growth of domestic-oriented industries decelerated to 2.7% versus August’s 7.1%, as manufacturing of motor vehicles fell. Export-oriented industries also eased, growing 3.4% in September, compared with August’s pace of 6.3%, due to moderation in the segments of rubber products and electronics.

Manufacturing sales rose at its slowest pace since April, gaining 2.9% to RM162.3 billion, the department said in a separate statement. On a month-on-month basis, sales were 1% lower.

The rise was primarily driven by the electrical and electronics sub-sector, which grew 5.8%, while food, beverages and tobacco increased by 5.6%, and the group that covers non-metallic mineral products, basic metal and fabricated metal products climbed 5.1%.