Malaysia's export sales drops 3.2%

A bad sign for the industrial production.

According to DBS, ndustrial production figure for October is not going to look pretty judging from the poor export performance for the same month.

Here's more from DBS:

Industrial production is expected to have eased to 1.3% YoY, from 4.8% in the previous month. This should be in line with the weak export growth recorded in the same month.

Export sales fell 3.2% YoY on account of the sluggish global demand. This obviously will impact industrial production. Indeed, with the Eurozone in recession and the US struggling with its tepid growth, demand will surely remain weak in the coming months.

A pick up in Asia’s demand may provide some respite but much will really depend on whether China’s investment growth will rebound as expected. For now, export performance and industrial activity will remain weak. A more pronounced pick-up can be expected only after February next year.

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