Man­u­fac­tur­ing in­dex falls to post-June low

The Sun (Malaysia) - - SUNBIZ -

PETAL­ING JAYA: The head­line Nikkei Malaysia Man­u­fac­tur­ing Pur­chas­ing Man­agers’ In­dex (PMI) came in at 47.2 in Oc­to­ber, down from 48.6 in Septem­ber, sig­nalling wors­en­ing op­er­at­ing con­di­tions in Malaysia’s goods-pro­duc­ing sec­tor.

In fact, the lat­est read­ing was the low­est since June and be­low the long-run series aver­age of 49.5.

Con­tribut­ing to the over­all de­cline in man­u­fac­tur­ing con­di­tions, pro­duc­tion de­creased for the 19th con­sec­u­tive month. More­over, the rate of con­trac­tion was sharper than the his­tor­i­cal aver­age.

Ac­cord­ing to pan­el­lists, chal­leng­ing eco­nomic con­di­tions and a fall in de­mand led to a drop in out­put.

New or­ders de­creased at the sharpest rate in 11 months dur­ing Oc­to­ber. Firms linked a fall in to­tal sales to un­cer­tainty in the mar­ket. Data also sug­gested that a de­cline in in­ter­na­tional de­mand con­trib­uted to the over­all de­crease in in­com­ing new or­ders.

Re­flect­ing wors­en­ing op­er­at­ing con­di­tions, man­u­fac­tur­ers cut back on buy­ing ac­tiv­ity.

Fur­ther­more, the rate of de­cline was the quick­est since June. Sub­se­quently, in­ven­to­ries of pre­pro­duc­tion items were de­pleted at the sharpest pace in 14 months.

Due to a sharp fall in new or­ders, firms were able to clear lev­els of un­fin­ished work for the first time in four months dur­ing Oc­to­ber. Sup­pli­ers were also able to meet delivery sched­ules, as lead times short­ened for the tenth suc­ces­sive month.

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