KUALA LUMPUR: The industrial production index (IPI) grew 5.4% in September this year from a year earlier, the Statistics Department said.

In a statement yesterday, the department said the IPI increase was attributed to growth in all three components of the IPI. Manufacturing output rose 4.7% and mining was up 7.1%, while electricity production increased 6.2%.

The increase in manufacturing output was buoyed by the growth in electrical and electronic products besides mineral and metal products. Higher output of food, beverages and tobacco items also contributed to the growth of manufacturing output. Growth in the mining sector is attributed to the increase in crude oil and natural gas production.

However, on a month-on-month (m-o-m) basis, the IPI for September fell 0.2% due to a decline in manufacturing and electricity output. The mining index, however, registered an increase of 0.2%. Cumulative third-quarter IPI rose 4.1% year-on-year (y-o-y) on growth in all the three components of the index.

The Statistics Department, however, did not specify IPI numbers for the nine months to September.

The 5.4% y-o-y growth in the September IPI beat a median growth forecast of 5.1%  based on a Reuters survey involving 12 economists.

In a separate statement, the Statistics Department said the sales value of the local manufacturing sector rose 4.1% to RM55.4 billion in September compared with RM53.2 billion a year earlier.

Cumulative nine-month sales value rose 7% to RM490.7 billion from a year earlier.

On a m-o-m basis, September sales value fell 0.6% compared with August.

This article first appeared in The Edge Financial Daily, on November 12, 2014.