KUALA LUMPUR (July 24): AmBank Group Research said it is optimistic that Malaysia’s 2Q2018 gross domestic product (GDP) growth should perform better than 1Q2018.

In a note today, AmBank group chief economist and head of research Dr Anthony Dass said May Leading Index (LI) suggested some signs of softening are evident in 3Q2018 after it fell by 0.7% year-on-year (y/y) to 117.8 points.

He said that meanwhile, the Coincident Index (CI), which grew 2.2% y/y to 133.7 points in May, indicates the 2Q2018 GDP performance should be stronger than 1Q2018.

“Factoring in the key macro data for the first two months of 2Q2018 such as industrial production, manufacturing sales, exports, imports and loans approved, we are optimistic 2Q2018 GDP should perform better than 1Q2018.

“Our preliminary estimate suggest 2Q2018 GDP could expand between 5.5% and 5.7% versus 5.4% in 1Q2018. 

“Meanwhile, our full-year GDP growth remains at 5.5% with the lower end at 5.3%,” he said.