Malaysia manufacturing PMI detoriates to 47.8 in February

KUALA LUMPUR: The headline Nikkei Malaysia Manufacturing Purchasing Managers Index (PMI) deteriorated to 47.8 in February 2016 from 48.6 in January.

The index is an indicator of manufacturing performance, whereby any figure greater than 50.0, indicates overall improvement of sector operating conditions.

The headline PMI signalled a sharper rate of contraction in the Malaysian manufacturing sector.

Financial information services provider Markit, which compiled the survey, said February survey data pointed to a sharper deterioration in operating conditions at Malaysian manufacturers, with production declining at the fastest rate since November last year, led by a decrease in new orders.

Markit economist Amy Brownbill said the data suggested that the primary cause of the decline in total new work intakes was a fall in domestic demand, as new export orders rose at the sharpest rate since last October.

“Meanwhile, inflationary pressures continued to build, as input prices rose at a marked rate.

Panellists mentioned greater raw material costs and an increase in sales tax as factors contributing to higher cost burdens,” she added.

However, on a positive note, new orders from abroad increased, suggesting the drop in total new orders was driven by a fall in domestic demand. — Bernama

The data suggested that the primary cause of the decline in total new work intakes was a fall in domestic demand, as new export orders rose at the sharpest rate since last October.