Malaysia’s PMI eases slightly in July
The headline IHS Markit Malaysia Manufacturing Purchasing Managers’ Index (PMI) eased marginally to 47.6 in July from 47.8 recorded in the month before.
IHS Markit said the PMI survey data for the period showed that Malaysia’s manufacturing sector continued to endure a challenging business environment.
“So er demand has put further pressure on production and deterred firms from increasing their workforces, but businesses retained an optimistic outlook on balance, foreseeing improved production growth over the coming 12 months,” it said in a statement yesterday.
IHS Markit chief business economist Chris Williamson said the pull-back in the PMI from the higher levels seen early in the second quarter came at a time of weakening global economic growth and rising worldwide geopolitical concerns.
He added that the global PMI surveys had indicated the slowest pace of worldwide gross domestic product (GDP) expansion for three years in recent months, with deteriorating trade flows and reduced business investment acting as major drags.
“Trade tensions are also rising across the Asia-Pacific region. It is, therefore, no surprise to see Malaysia’s manufacturers reporting tougher operating conditions in this context. However, the survey data remain broadly indicative of both GDP and manufacturing output growing at annual rates of 4.5 per cent,” he was quoted as saying in the statement.
Meanwhile, IHS Markit PMI reported a further deterioration in manufacturing conditions across Asean at the start of the third quarter.
The headline index fell to 49.5 in July from 49.7 in June, signalling a second successive monthly deterioration in operating conditions at Asean manufacturers. IHS Markit economist David Owen said the Asean manufacturing sector remained in decline in July.
“The rate of deterioration was the steepest in two years, driven by lower output and employment. Firms were led to reducing production levels on the back of only marginal increases in new orders in recent months,” he added. — Bernama