KUALA LUMPUR – The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) rose slightly to 47.8 in July from 47.7 in June, S&P Global Market Intelligence said in a statement today, Xinhua reported.
The latest reading pointed to a sustained slowdown in business conditions that was broadly in line with that seen on average over the second quarter of the year, S&P said in a statement.
The latest PMI reading is consistent with sustained expansions in both manufacturing production and GDP, although there are signs that growth has dampened somewhat since the start of the year.
S&P Global Market Intelligence economist Usamah Bhatti said that based on the latest PMI data, the Malaysian manufacturing sector continued to indicate sustained weakness in operating conditions in July.
According to him, new order intakes moderated to the greatest extent for six months while production levels continued to be scaled back at a solid pace, indicating that the sector still has some way to go before demand recovers fully.
“Firms also noted concern on the price front, as input price inflation accelerated for the fourth month in a row to reach the highest since February,” he said.
To limit cost pressures, firms looked to reduce workforce numbers, with the latest moderation the sharpest since the end of last year, he said. – Bernama, August 1, 2023
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