Malaysian manufacturing sales in July rose 7.3 percent from a year earlier to RM28.1 billion and were up 1.4 percent from June, the Statistics Department said today.

For the first seven months of the year, manufacturing sales increased 9.7 percent to 190.5 billion ringgit, according to preliminary figures released by the department.

Economists noted that this was the first time since March that sales growth had surpassed that of output. In July, manufacturing sector output rose 5.7 percent from a year earlier.

"This is heartening. If the trend continues, this can help manufacturers ease out some excess inventory after a brief over-building process in the second quarter," said Azrul Azwar, economist with MIDF Sisma Securities.

"It's also worth pointing out that (sales) have has breached the RM28 billion mark for the first time since March," he said.

"It would be a positive move for the sector if this can be maintained," he added.

According to preliminary figures released last month, manufacturing sales in June rose 7.40 percent year-on-year to RM27.70 billion and were up 3.0 percent from May.

Consumer index

Meanwhile consumer prices in August rose 1.0 percent from a year earlier but fell by 0.1 percent from July, said the Statistics Department.

For the eight months to August, the consumer price index (CPI) was up 1.1 percent year-on-year.

According to data released earlier, inflation in July rose 1.0 percent year-on-year and 0.2 percent from June.

In the January-August period, prices rose due to increases in all components, with the exceptions of clothing and footwear, which declined 2.0 percent, and furniture, furnishings and household equipment and operation, which fell 0.6 percent, the Statistics Department said.

Transport and communication prices rose 2.1 percent, medical care and health services increased 1.9 percent and miscellaneous goods and food added 1.3 percent. - AFP