• IPI soared 9.3% yoy in March

• Output advanced in manufacturing and electricity sector, steered IPI growth higher

• Production of the mining sector shrank in March

• Manufacturing sales increased 15.3% yoy; 7.2% mom in March

• Productivity increased 16.5% yoy in March

• 1Q21 global semiconductor sales increase 3.6% over previous quarter

• Global industrial output growth gains steam in March

• Strong manufacturing output to continue IPI expansion

IPI soared 9.3% yoy in March

Growth in industrial production soared in March, the highest since July 2013. The IPI surged higher, rising by 9.3% yoy, after a 1.5% yoy rise in February 2021. The growth was the fourth straight month of expansion in industrial output, driven by strong output in both export and domestic-oriented industry in the manufacturing sector. The production growth was driven by heightened manufacturing sector production and electricity output. Mining output continued declining but at a softer pace than the previous month.

On a monthly basis, the IPI in March rose by 7.4%. Based on the month-on-month comparison, the expansion in IPI for March was due to the increase in all sub-indices of electricity (+16.2%), mining (+7.0%), and manufacturing (+6.8%). In seasonally adjusted terms, IPI in March 2021 fell by 2.2%. The contraction was due to the manufacturing index (-1.8%) and mining index (-4.6%). However, the electricity index increased by 3.2%.

The IPI for 1Q 2021 recorded a growth of 3.9% compared to the same period of the previous year. This positive growth was steered by an increase of 6.8% in manufacturing. Meanwhile, mining and electricity recorded a reduction of 4.1% and 0.1% respectively.

Source: BIMB Securities Research - 6 May 2021