The country's August industrial output rose 6.7 percent compared with a year ago but contracted 4.2 percent from July, the Statistics Department said today.

In August, manufacturing sector output grew 7.6 percent from a year earlier, electricity output was up 5.2 percent and mining rose 2.8 percent, it said.

The month-on-month decrease in August industrial output was brought about by a 5.6 percent decline in manufacturing. However, there was a 0.6 percent increase in electricity and 0.5 percent rise in mining, it said.

The Statistics Department offered no commentary on the August figures but economists noted industrial output for July had been heavily upgraded.

Domestic demand

"The figures for August were powered by the strong growth in the manufacturing sector," said Azrul Azwar, economist with MIDF SISMA Securities, adding that the outcome, along with July's revision, supported his expectations for a second half rebound.

"I think industrial output growth will continue to be supported by domestic demand," he said.

"The diverging growth trend between output and overseas demand could highlight a shift in policy from an economy heavily driven by exports to a more balanced economy with an emphasis on domestic demand," he said.

Malaysia trade figures bucked the regional trend in August, with declines of 1.9 percent in exports and 8.7 percent in imports, while other countries posted positive growth, he said.

July's industrial output rose 7.8 percent year-on-year, revised up from the original gain of 4.6 percent, Azrul said.

This reflected revised 9.9 percent growth for manufacturing sector output, compared with the originally given 5.7 percent, he said.

For the eight months to August, the Statistics Department said industrial output was up 7.9 percent from a year ago, supported by growth in all sectors. - AFP