The six-month smoothed growth rate of the Coincident Index (CI) increased slightly at 1.9% in May 2007. The positive change of 0.7% also shown from 120.0 to 120.8 points in the current month.The (CI) components contributed positively among others, index of industrial production (0.3 %) and gross import (0.2%).
The Leading Index (LI) six-month smoothed growth rate accelerated rapidly to reach a rate of 9.2% in May 2007. Ratio of prices to the unit labour cost (0.5%), money supply, M1 (0.3%), total trade with eight major trading partners (0.3%), industrial material price index (0.3%), number of new companies registered (0.3%) are among components recorded positive change. However number of housing permits approved recorded negative change (-0.3%). The LI rose by 1.8% to register 151.6 points in the current month.
On the contrary, the Lagging Index (LGI) decreased by 2.0% to 140.6 points in May 2007. The contribution of number of new vehicles registered (0.5%), number of defaulters in EPF (0.3%) and 7 day call money rate (0.1%) were dampened by the negative change of real excess lending to the private sector (-2.6%) and number of investment projects approved (-0.4%). The six-month smoothed growth rate remained negative in the current month.
The growth rate of the LI advanced strongly from 6.7% to 9.2% in May 2007. This scenario suggests that Malaysian economy will continue with favourable growth momentum in the fourth quarter of 2007. |
