Business Conditions Index up on economic recovery

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Malaysia’s Business Conditions Index increased by 28.8 points year-on-year to 111.8 points in the first quarter ended March 2021.

The Malaysian Institute of Economic Research said the expansionary mode was also partly driven by the recovery in the domestic and global economy, the launch of the National Covid-19 Immunisation Programme and the provision of the economic stimulus packages to manufacturers.

On a quarter-on-quarter basis, Mier said the BCI slipped 3.6 points to 111.8 points, attributable to the decline in sales following the drop in domestic and external orders, as well as the falling production due to lower demand from local and foreign sources. “Despite the deterioration in the index, business sentiments were above the threshold level for two consecutive quarters, ” it said in its Business Conditions Survey Report for Q1 2021.

Mier noted that the manufacturing sales component sub-index of the BCI fell by 4.85 points q-o-q to 54.5 points but improved 8.3 points y-o-y, suggesting that manufacturing sales had regained momentum. — Bernama

 

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