Nikkei Manufacturing PMI falls to 498.2 in November

KUALA LUMPUR: The headline Nikkei Malaysia Manufacturing Purchasing Managers’ Index ( PMI) fell to a six-month low of 48.2 in November from 49.2 in the preceding month, indicating a decline in the country’s goodsproducing sector.

The financial information services provider IHS Markit in a statement yesterday said the lower PMI contributed to the latest monthly contraction in Malaysia’s manufacturing sector which was weaker on demand pressures.

“New orders decreased in November and to the greatest extent for six months. Meanwhile, export sales picked up from the previous month, indicating that the soft patch in order book volumes stemmed from domestic clients,” it said.

Ho w e v e r, Ma l a y s i a n manufacturers continued to add to their payrolls.

“Although the rate of job creation was mild and slower than seen in October, it was broadly in line with the series average. Fewer new sales in conjunction with higher staffing levels enabled firms to channel additional resources to clear outstanding business,” it added.

Meanwhi l e , the Asean manufacturing sector saw a marginal improvement in operati ng condit ions in November.

The PMI rose to 50.4 in November from 49.8 in October, signalling a slight improvement in the health of the manufacturing sector.

“Output grew at the quickest pace since June during November, with five of the seven countries monitored by the survey recording an improvement in production levels.

“New orders expanded at a fractional pace, though this marked an improvement from a decline in October, while export sales declined for the fourth successive month, albeit marginally,” IHS Markit said.

Its economist David Owen said Asean countries saw a small rebound in manufacturing performance in November, after recording a decline in October.

“However, the rate of growth was still weaker than those seen earlier in the year, as overall orders increased only fractionally. Meanwhile, export demand continued to deteriorate in line with the global trade slowdown,” he added. — Bernama