(AFP) Malaysia's sales of manufactured goods fell 9.7 percent year-on-year in June, the Statistics Department said today.

Sales for the month were valued at RM26 billion against RM28.8 billion in June last year. They were down 1.1 percent from May.

An economist with a foreign brokerage said manufacturing sales were expected to fall further with declines hitting double digits in the third quarter, while unemployment in the technology sector would rise further.

The Singapore-based economist, who requested anonymity, said Malaysia's export-driven economy was feeling the effects of the global slowdown.

Most analysts predict the economy will grow by less than half the 8.5 percent rate of last year. The government in March revised downwards its economic growth forecast this year to between five and six percent, from seven percent previously.

The department of statistics said the number of people working in the manufacturing sector fell 0.7 percent over the year to June.

Inflation up

In a separate report, the department said inflation in Malaysia rose 1.4 percent year-on-year in July.

In the seven months to July, inflation rose 1.5 percent compared to the same period last year.

Four main groups - food, rent, fuel and power, transport and communication - accounted for 89.4 percent of the overall rise during the seven months to July, the department noted.

The Singapore-based economist said the inflation rate was within the government's forecast of 1.5 to 2.0 percent for the year.