Manufacturing PMI soars to five-month high in July

KUCHING: Malaysia’s Purchasing Managers Index (PMI) continues to soar to a five-month high in July at 49.7 from 49.5 in June.

According to an economic viewpoint report by Kenanga Investment Bank Bhd (Kenanga Research), the continued marginal expansion of our PMI was due to expansions in output and new export orders that grew marginally for the first time in six months as evidence by stronger demand from key international markets.

“According to IHS Markit, the latest reading signaled a broad stabilization in manufacturing conditions across Malaysia,” said the research arm.

It noted that the expansion in output requirements saw a moderate raised rate of hiring from firms in July – bringing employment to its eighth expansion in the past nine months.

“Similarly, the level of positive sentiment strengthened from June’s eight – month low due to expected improvements in client demand and new projects ahead,” added the research arm.

It added, new orders also declined for the sixth consecutive month in July due to subdued demand and a weaker ringgit which also led to higher import costs and pressure input prices for manufacturers. — Bernama