Malaysia economic Activity Index Down 2.9%

Published: 2009/02/28

Malaysia’s six-month smoothed leading index, a forward looking measure of economic activity, fell 2.9 per cent in December, the Department of Statistics said late yesterday. The smoothed index is adjusted for one-off statistical events.

In November, the six-month smoothed index fell 2.5 per cent. The coincident index fell 1.6 per cent to 119.2 points while the six-month smoothed coincident index dropped 6.0 per cent.

“Current movements of the leading components showed that there is no clear indication for the leading index to grow consistently upward in the months ahead,” the department said in a statement posted on its website www.statistics.gov.my.

“Supported by continuous decline in the coincident index, these provide signals that economy is likely moving towards an economic recession,” it added. Malaysia’s economy grew just 0.1 per cent in the fourth quarter from a year ago, the slowest pace in seven years, and many economists expect a contraction this year.

The leading index is the only forward-looking indicator released by Malaysia. In other countries, indicators such as purchasing managers indices are used to measure business confidence. - Reuters