MANUFACTURING SECTOR SHOWS RECOVERY IN AUGUST
Sector recorded output growth and overall operating improvement last month
THE Malaysian manufacturing sector showed signs of recovery in August last month against the backdrop of rising exports. In a statement, IHS Markit said the sector registered the first expansion of production and overall improvement in operating conditions since April.
The headline Nikkei Malaysia Manufacturing Purchasing Managers’ Index (PMI) — a composite single-figure indicator of manufacturing performance — appreciated above the 50.0 no-change mark to 50.4 last month , up from July’s 48.3 and indicating the first improvement in operating conditions since April.
“Although total new orders continued to decline, the rate of contraction softened against a backdrop of rising exports,” said the information, analytics and solutions provider.
Firms also expanded workforce numbers, which enabled them to keep on top of overall workloads, while also indicating a preference for de-stocking, by opting to deplete inventories of both inputs and finished goods.
Cost pressures continued to ease, while business optimism was its highest since December 2013.
In particular, firms highlighted growing demand from foreign markets in China, Southeast Asia and the Middle East.
Optimism among panellists regarding the coming 12 months reached its highest level since December 2013.
Higher production and exports in August, combined with hopes of growth in new orders, were linked to the improvement in business outlook. Bernama