Sept IPI targeted at 2.1pc

KUALA LUMPUR: Industrial output is expected to grow at a slower pace in September dragged down by weaker mining activities.

Economists expect manufacturing activities to continue to remain healthy.

A Business Times poll expects industrial production as measured by the Industrial Production Index to grow by 2.21 per cent year-on-year.

Research houses polled include Alliance Research (2.0 per cent), AmResearch (3.0 per cent), Bank of America Merrill Lynch (2.5 per cent), BIMB Securities (4.0 per cent), CIMB Investment Bank (3.5 per cent), Credit Suisse (0.5 per cent), Maybank Investment Bank (1.5 per cent), Nomura Research (2.0 per cent),
RHB Research (2.0 per cent), Standard Chartered Bank (0.8 per cent) and UOB Bank (2.5 per cent).

The Statistics Department will release the data today.

Bank of America Merrill Lynch expects the September IPI to improve from the 2.3 per cent in August.

"Growth will be led by manufacturing (4.7 per cent) and electricity (5.6 per cent), while mining probably remained weak."

The IPI slipped unexpectedly in August to post a 2.3 per cent growth, led by output chemical, rubber and plastic products, tech products and transport equipment and other manufactures