• IPI rebounded strongly at -0.4% yoy in June

• IPI improved on higher manufacturing output

• Manufacturing sales rebounded in June

• Productivity increased 6.5% yoy

• Global semiconductor sales increased 5.1% yoy in June.; 2Q sales down slightly

• SEMI: Chip manufacturing equipment spending to hit record USD70bn in 2021

• Global industrial production improved in June

• Rebound in June reflects the further resumption of economic activity

IPI rebounded strongly at -0.4% yoy in June

Industrial Production Index (IPI) rebounded strongly at -0.4% yoy in June, after a downwardly revised 21.6% slump a month earlier. This was the fourth straight month of decline in industrial production, but the smallest fall in the current sequence, due to the loosening of the movement control orders to prevent the Covid-19 outbreak.

On monthly basis, the IPI in June surged 26.2% compared with the previous month. Based on month-on-month comparison, the improvement of IPI in June was due to the increase in all indices; index of manufacturing (38.6%), index of electricity (0.2%) and index of mining (2.4%). In a seasonally adjusted terms, IPI in June recorded an increase by 26.2% due to an increase in all indices: mining index (3.5%), manufacturing index (35.5%) and electricity index (6.0%).

The IPI for the second quarter 2020 recorded a significant decline of 17.9% as compared to the same period of the previous year. This decrease was due to a deterioration in all indices; mining index (-19.6%), manufacturing index (-18.1%) and electricity index (-10.8%).

Source: BIMB Securities Research - 10 Aug 2020