SOLID RESULT IMPROVES OUTLOOK
Strong external demand, higher export orders key drivers last month, says MIDF
THE solid result from the Nikkei Malaysia Manufacturing Purchasing Managers’ Index (PMI) provides a rosy outlook on Malaysia economy this year, in particular the industrial production and external trade performance, said MIDF Research.
Strengthened external demand and increased in new export orders were key drivers for last month’s manufacturing indicator, which reflected firm recovery momentum in the global economic activity, it added.
Malaysia last month posted its first net improvement in manufacturing operating conditions since March 2015, supported by higher output and growth in new export orders, according to a poll by Nikkei.
In a statement, Nikkei and survey compiler IHT Markit said the headline PMI rose to 50.7 last month, above 50 for the first time in two years, from 40.9 in March.
MIDF Research said expected strong growth in major economies and gradual recovery in commodity prices were the factors for the upward revision.
“For Malaysia, we opined firmer global growth will translate into higher demand on our exported goods and a booster for export-oriented industries.”
It maintained its forecast for exports and industrial production to grow by 8.5 and 5.3 per cent, respectively, this year.