Strong ex­ter­nal de­mand, higher export or­ders key driv­ers last month, says MIDF

New Straits Times - - Business - KUALA LUMPUR

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.

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