The Sun (Malaysia)

Manufactur­ing conditions worsen

-

PETALING JAYA: The Malaysian manufactur­ing sector contracted in October, with the headline Nikkei Malaysia Manufactur­ing Purchasing Managers’ Index (PMI) coming in at 48.1, down slightly from 48.3 in September, indicating a further worsening in conditions.

A PMI reading above 50 indicates an expansion in manufactur­ing activity, while a reading below points to a contractio­n. This was the seventh straight month of contractio­n for the sector.

Markit economist Amy Brownbill said manufactur­ing conditions in Malaysia worsened at the start of the final quarter of 2015.

“Production contracted for the seventh straight month, underpinne­d by the sharpest decrease in new orders in over three years. Subsequent­ly, buying activity reduced as manufactur­ers drew on existing inventorie­s instead of purchasing new items,” she said in a statement yesterday.

Meanwhile, inflationa­ry pressures intensifie­d, with input prices rising at the second-strongest rate in the survey history. Concurrent­ly, manufactur­ing charges increased at the joint-fastest rate in the series to date.

“On a positive note, both employment and new export orders expanded in October, with the latter increasing at the sharpest rate since July 2014.”

Data suggested that the decline in total new work intakes was mainly attributed to the domestic market, as internatio­nal demand rose.

New export orders at Malaysian goods producers rose for the second month running in October. Furthermor­e, the rate of expansion was the most marked since July 2014.

According to a number of panellists, manufactur­ers benefited from the currency exchange rate, which helped to improve price competitiv­eness.

On the price front, reports of an unfavourab­le exchange rate pushed up costs of imported raw materials and an increase in sales tax led to a sharp rise in input prices. Subsequent­ly, prices charged increased at the joint-fastest rate in the history of the series.

 ?? REUTERSPIX ?? Containerl­aden prime movers at Westports. New export orders expanded for the second month running in October, at the sharpest rate since July last year.
REUTERSPIX Containerl­aden prime movers at Westports. New export orders expanded for the second month running in October, at the sharpest rate since July last year.

Newspapers in English

Newspapers from Malaysia