Chart of the Day: Finally, here's some good news from the manufacturing sector

Even as it shrank 6.5% in 1Q13.

According to CIMB, advance data released two weeks ago show 1Q13 manufacturing contracting 6.5% yoy vs. 2M13’s -8.3%, implying a yoy decline of about 3% yoy for Mar.

The official release of the MPI shows a slightly weaker set of figures with sequential growth of 6.2% mom SA and a yoy decline of 4.1% yoy (consensus: -3.0% yoy, CIMB: -4.5% yoy). 1Q13 MPI contracted 6.8% yoy vs. 1Q12’s -1.1% and 4Q12’s -0.2%.

Here's more from CIMB:

When the advance data was released, we surmised that the smaller decline in Mar came from a lift from the volatile biomedical cluster and a smaller drag from tech.

That was indeed the case. Pharma output expanded 42% mom or 15.8% yoy last month to its highest index reading this year. The drugs rebound added almost 3% pts to Mar’s MPI growth to narrow the yoy decline to 4.1%.

Excluding drugs, MPI was unchanged from the previous month, after a 0.3% dip in Feb (-3.6% in Jan). Yoy, it declined 8.6% vs. -15.9% for Feb (+4.1% in Jan).

Excluding biomed, 1Q13’s MPI contracted 7.1% yoy vs. -4.5% in 1Q12 and 4Q12’s -0.9%. All key clusters contracted, led by tech (-9.8% yoy), biomed (-5.3%), precision engineering (-10.5%), transport engineering (-8.1%) and chemicals (-1.1%). 1Q13 was not a good quarter for the manufacturing sector!