Which two LI components rose, and what does that imply?

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Two Leading Index Components Saw Increases in January 2020, Suggesting Mixed Economic Signals

Malaysia's Leading Index (LI) experienced a slower year-on-year growth of 0.7 per cent in January 2020, down from 1.9 per cent in December 2019, indicating a potential softening of economic growth in the near future. While the overall trend suggested a slowdown, two specific components of the LI did register increases. These were the expected sales value in the manufacturing sector, which rose by 0.5 per cent, and the Bursa Malaysia Industrial Index, which saw a 0.1 per cent increase.
Expected Sales Value in Manufacturing

The rise in the expected sales value within the manufacturing sector is generally interpreted as a positive indicator for future economic activity. This component reflects manufacturers' optimism about their upcoming sales, suggesting that businesses anticipate an increase in demand for their products. Such forward-looking sentiment can translate into sustained or increased production levels, contributing to overall economic output in the subsequent months.
Bursa Malaysia Industrial Index

Similarly, an increase in the Bursa Malaysia Industrial Index points towards improved performance or positive sentiment within the industrial segment of the stock market. This index comprises companies involved in various industrial activities, and its rise can signify investor confidence in the sector's prospects. Higher valuations or increased trading activity in industrial stocks often correlate with expectations of stronger business performance and economic expansion.
Broader Economic Context and Limitations

Despite these two positive components, the overall LL's deceleration suggests that other factors within the index were exerting a downward pull on economic momentum. The Department of Statistics Malaysia noted that the January 2020 data did not yet incorporate the immediate impacts of internal shocks like the Covid-19 pandemic, which began affecting Malaysia in late January. Therefore, the full economic implications of these events were expected to be reflected in subsequent months' indices, potentially overshadowing the positive signals from manufacturing sales and the industrial index.

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Which two LI components rose, and what does that imply?

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