Which October 2022 factors lifted the Leading Index by 0.4 points?

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Factors Contributing to the Leading Index's 0.4-Point Increase in October 2022

The Leading Index (LI) in October 2022 saw a 0.4 per cent increase, reaching 109.6 points compared to 109.2 points in October 2021. This upward movement was primarily supported by the number of housing units approved and the real imports of specific metal categories. Despite this year-on-year growth, the LI's monthly performance indicated a moderation, with a negative 0.3 per cent change in October 2022, an improvement from the negative 1.3 per cent recorded in September 2022.
Housing Unit Approvals as a Positive Contributor

A key element driving the year-on-year increase in the Leading Index was the number of housing units that received approval. This metric reflects anticipated future construction activity and consumer confidence in the property market, signalling potential economic expansion in the subsequent months. The positive contribution from housing approvals underscores a segment of the economy showing forward momentum.
Impact of Metal Imports on the Leading Index

The real imports of other basic precious and other non-ferrous metals also played a significant role in lifting the Leading Index. Increases in the import of these materials can indicate heightened industrial activity and demand for manufacturing inputs. This component suggests a strengthening in sectors reliant on these specific metals, contributing to the overall positive trend observed in the LI.
Broader Economic Context and Monthly Trends

While the year-on-year figures showed an increase, the monthly performance of the Leading Index revealed a slight deceleration. The negative 0.3 per cent monthly change in October 2022, though less severe than the previous month, points to underlying economic pressures. This trend was influenced by factors such as the Bursa Malaysia Industrial Index, real imports of semiconductors, real money supply M1, and expected sales value for manufacturing. The Coincident Index (CI), which measures current economic activity, did show a substantial year-on-year increase of 6.5 per cent to 120.5 points, but its monthly change decreased by 0.6 per cent.

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Which October 2022 factors lifted the Leading Index by 0.4 points?

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