Friday, November 18, 2011

#Flash* Malaysia's economy expanded 5.8% in 3Q vs 4.3% in 2Q

KUALA LUMPUR (Nov 18):'' Malaysia's economy expanded at a stronger pace of 5.8% in the third quarter of 2011 versus 4.3% growth in the second quarter, boosted by stronger domestic demand, Bank Negara Malaysia said.

It said on Friday the robust domestic demand was driven by an expansion in both household and business spending as well as higher public sector expenditure.

'Domestic demand expanded by 9.0% (2Q 11: 5.6%), driven by the expansion in private sector spending and higher public sector expenditure,' it said.

BNM also said private consumption increased by 7.3% (2Q 11: 6.4%), in line with favourable income growth while public consumption expanded by 21.7% (2Q 11: 6.6%) following higher expenditure on emoluments and supplies and services, as well as bonus payments during the quarter.

On the supply side, most economic sectors recorded improvements, with the manufacturing sector recording a significantly better performance supported by firm regional demand for resource-based products while the supply chain had normalised after the disruptions arising from the Japan natural disaster.

BNM said the manufacturing sector expanded by 5.1% in 3Q versus 2.1% in 2Q. The CONSTRUCTION [] sector registered a higher growth in construction at 3.0% (0.6%), led by the civil engineering sub-sector.

The agriculture sector expanded 8.2% (6.9%) on account of strong production of both crude palm oil and natural rubber while services rose 7.0% (from 6.8%). However, mining contracted at a slower pace of 6.1% (-9.2%) as output of crude oil was affected by shutdowns of production facilities.

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