Business

M’sian manufacturers upbeat on 12-month production outlook: IHS Markit

Positive sentiment comes on hopes of subsiding pandemic, global economic revival

Updated 5 years ago · Published on 01 Mar 2021 8:00PM

M’sian manufacturers upbeat on 12-month production outlook: IHS Markit — IHS Markit says despite Malaysia’s Manufacturing Purchasing Managers’ Index dipping from January to last month, this was a considerably less severe deterioration than in the first wave of the Covid-19 pandemic. – Pixabay pic, March 1, 2021

KUALA LUMPUR – Firms in the Malaysian manufacturing sector were increasingly optimistic regarding the 12-month outlook for production.

IHS Markit said positive sentiment strengthened to the highest for five months amid hopes that the end of the pandemic would result in stable operating conditions and boost production and sales.

“Businesses continued to scale back production while incoming orders also moderated.

“Despite this, manufacturers were increasingly optimistic regarding the year-ahead outlook, with hopes that the pandemic would subside and trigger a broad recovery in demand and production,” it said.

The research firm said the headline IHS Markit Malaysia Manufacturing Purchasing Managers’ Index (PMI) – a composite single-figure indicator of manufacturing performance dipped from 48.9 in January to 47.7 in February.

“This reading indicated a further moderation in the health of the manufacturing sector, although the deterioration was considerably less marked than that seen during the first wave of the pandemic in April 2020,” it said.

At the same time, IHS Markit said the rate of job shedding at Malaysian manufacturing firms edged towards stabilisation in the latest survey period.

“Employment levels fell only marginally in February and at a pace that was softer than the previous month,” it added.

Meanwhile expectations regarding the 12-month outlook for Asean manufacturing PMI output dipped to the lowest since last September, although goods producers remained optimistic, on balance, of higher output over the coming year.

IHS Markit said conditions across the Asean manufacturing sector deteriorated for the first time in four months during February, according to latest IHS Markit PMI data, amid renewed contractions in both factory production and order book volumes.

“The headline PMI registered at 49.7 in February, down from January’s 32-month high of 51.4, and signalled the first deterioration in the health of the sector since last October,” it said.

Overall, it said the Asean manufacturing sector registered a slight decline during February, following two months of growth, with renewed falls in both factory production and new work weighing on the performance of the sector. – Bernama, March 1, 2021