Overview

Leading Index for July 2026 grows 1.1 per cent, economic momentum is sustained

The annual growth of the LI increased by 1.1 per cent in July 2026, recording 115.3 points compared to 114.0 points in the same period of the previous year. The primary factors driving this growth were Real Imports of Other Basic Precious & Other Non-ferrous Metals (24.1%) and Real Imports of Semiconductors (17.4%). Nonetheless, the overall performance softened slightly due to more moderate activity in several components, particularly the Number of New Companies Registered. Meanwhile, the monthly performance of the LI grew by 0.3 per cent, driven among others by Real Money Supply (M1) and Real Imports of Semiconductors, each contributing 0.1 per cent.

Although the smoothed long-term trend of the LI remains below 100.0 points, the domestic economic outlook is expected to remain resilient, strongly supported by a stable domestic labour market with a consistently low unemployment rate. Furthermore, the influx of high-impact investments in high-tech sectors, alongside sustained global demand for the semiconductor ecosystem and electrical & electronics (E&E) products, serve as primary buffers to maintain Malaysia's economic stability against external market uncertainties.

Reflecting current economic developments, the CI recorded a year-on-year growth of 1.7 per cent to reach 131.5 points in July 2026, as compared to 129.3 points in July 2025. This growth was supported by the Real Contribution, Employees Provident Fund (EPF) (5.8%), followed by the Industrial Production Index (4.5%). On a monthly basis, however, the CI recorded a marginal decrease of 0.1 per cent, attributed to a 0.2 per cent decline in both the Real Contribution, EPF and Capacity Utilisation in Manufacturing. 

The Diffusion Index for the LI remained unchanged at 71.4 per cent in July 2026. However, the Diffusion Index for the CI moderated to 66.7 per cent from the 100.0 per cent recorded in the previous month.

For interviews, press statement and clarification to the media, contact:
Baharudin Mohamad
Public Relation Officer
Email: baharudin[at]dosm.gov.my
Phone: 03 8090 4681

Not found what you looking for? Request data from us, through
Go to eStatistik
Email: data[at]dosm.gov.my
Phone: 03 8885 7128 (data request)