Business output to remain positive in next 12 months — Index

KUALA LUMPUR: Businesses would remain positive in terms of output over the next 12 months.

The projection of an improvement in underlying demand conditions was the key reason behind business confidence, according to anecdotal evidence, said the Nikkei Malaysia Manufacturing Purchasing Managers’ Index (PMI).

“However, the level of business sentiment eased from November’s 47-month high and remained weaker than the series average,” it said in a note yesterday.

The Nikkei Malaysia Manufacturing PMI said business conditions in the Malaysian manufacturing sector broadly stagnated in December, following an improvement in November.

The headline Nikkei Malaysia Manufacturing PMI – a composite single-figure indicator of manufacturing performance – fell from 52.0 in November to 49.9 in December.

This signalled a broad stagnation in the goods-producing economy, following the strongest growth in over three-and-a-half years in the previous month.

“The fall in the headline PMI was driven by a contraction in new orders. Moreover, output growth slowed to a modest pace.

“Despite reports of subdued demand conditions, firms raised their payroll numbers to meet production requirements,” it said. — Bernama