GDP predicted to grow 4% in Q3

All thanks to the 20% expansion in manufacturing.

GDP growth in Q3 is expected to hit 4% YoY due to the 20% pickup in manufacturing from July to August.

According to Maybank Kim Eng, the Purchasing Managers' Index (PMI) has been in the expansionary phase for 13 consecutive months.

The continued expansion of the global PMI also suggests that external demand has no signs of letting down until 2018.

Services growth also likely grew with recovery on board, particularly to financial, business and wholesale & retail trade.

The sectors continue to be supported by firmer external demand.

Non-oil re-exports, a proxy wholesale trade, grew 14% in July to August, significantly higher than 7.8% in Q2.

Real retails sales are also on the way to recovery as they grew 1.9% in Q2, compared to 0.4% last year.