Leading Index down 4% in July on prolonged disruptions to economy — DOSM

Leading Index down 4% in July on prolonged disruptions to economy — DOSM
-A +A

KUALA LUMPUR (Sept 24): Malaysia’s Leading Index (LI) dropped 4% in July 2021 year-on-year (y-o-y) to 105.0 points versus 109.4 points in July 2020, according to the Department of Statistics Malaysia (DOSM).

The LI is a predictive tool used to anticipate economic upturns and downturns in an average of four to six months ahead.

Chief statistician Datuk Seri Dr Mohd Uzir Mahidin said “prolonged disruptions to the economy continued to affect the performance of the LI, which showed a declining trend in July 2021”.

He pointed out that the downward shift of 4.4 points was mainly driven by a reduction in the number of new companies registered, with a total of 2,646 newly registered local companies in July 2021 against 5,522 in the same month of last year. 

“Besides that, the decrease was also influenced by the base effect from the previous year.

“Concurrently, the LI also posted a month-on-month (m-o-m) decrease in July 2021 at -0.6%, primarily caused by real imports of other basic precious and other non-ferrous metals (-1.3%),” the chief statistician said in a statement today.

He said considering the weaker performance of the LI in the reference month and the declining trend of the smoothed LI growth rate since March 2021, it is expected that Malaysia’s economic outlook will likely be surrounded by uncertainty.

“Nevertheless, the effectiveness of various economic and health strategies alongside the cooperation of the people in adopting the new normal and adhering to the standard operating procedures (SOPs) may revive near-term economic prospects,” he added. 

The Coincident Index (CI) continued to show a higher downward trend y-o-y, which declined 5.2% (June 2021: -3.1%). It registered -2.5% m-o-m, attributed to an unfavourable performance of almost all of CI components, mainly the volume index of retail trade (-1.5%).

Meanwhile, the online Malaysia Population and Housing Census 2020 (Malaysia Census 2020) is being conducted nationwide until full coverage is accomplished.

“All Malaysian residents are urged to cooperate in realising the success of the Malaysia Census 2020 to ensure that no one is left behind as your data is our future,” Mohd Uzir said. 

For more info, please visit the Malaysia Census 2020 portal at www.mycensus.gov.my or social media @MyCensus2020.

Read also:
Malaysia’s August inflation at 2% year-on-year amid transport, food price increase