The Leading Index, which provides an early signal of the direction that the economy is heading, fell by 0.5% mom in February, the third consecutive month of decline and compared with -0.6% in January and -0.3% in December. The smaller decline was due to a smaller drop in the number of housing permits approved (-0.1%) and a pick-up in money supply (+0.9%) as well as an improvement in Bursa Malaysia Industrial index. These were, however, offset partially by declines in trade with eight major trading partners (-0.1%), CPI for services (-0.1%; inverted), industrial material price index (-0.1%), the ratio of price to unit labour cost in the manufacturing sector (-0.8%) and the number of new companies registered (-0.3%) during the month. As a result, the leading index’s six-month smoothed growth rate weakened to 5.2% in February, from +7.7% in January and a peak of +12.9% in November (see Chart 1). This was the third straight month of easing, indicating that the economy will likely grow at a more moderate pace in 2H 2010.
Economic Highlights : Leading Index Eased In February, Pointing To A More Moderate Economic Growth In 2H 20...
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