Fell 2.2% YoY in June on weak manufacturing, mining, and a high base effect
Industrial Production Index (IPI) growth fell sharply in June (-2.2% YoY; May: 4.8%) registering above house estimate but below market expectations (KIBB: -3.3%; Consensus: -1.0%)
- The YoY contraction was driven by a sharp decline in the manufacturing and mining indices but was mainly attributable to a high base from June 2022.
- MoM (2.2%; May: 7.3%): slowed to a two-month low, particularly due to a MoM contraction in the mining and electricity indices.
Manufacturing index growth returned to a contractionary level (-1.6% YoY; May: 5.1%), driven by a sharp downturn in exports (-14.1%; May: -0.9%) and a similar contraction in manufacturing sales (-4.0%; May: 3.3%)
- The decline was led by a contraction in petroleum, chemical, rubber & plastic products (-4.6%; May: 3.0%) and electrical & electronic products (-3.6%; May: 1.9%), both of which reached a three-year low, as well as slower growth in the food, beverages & tobacco segment (2.9%; May: 11.6%).
- MoM (5.5%; May: 7.0%): growth eased primarily due to a slowdown in export-oriented industries
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