The seasonally adjusted SandP Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) dipped from 49.7 in August to 49.5 in September, signaling a sustained, albeit marginal softening in the health of the manufacturing sector.
SandP Global Market Intelligence said in a note on Tuesday that the latest PMI reading suggested that Malaysia’s gross domestic product (GDP) growth is running at a broadly similar rate as that seen in the second quarter of 2024, as well as pointing to sustained year-on-year improvements in official manufacturing production data.
“The latest PMI data revealed that business conditions in the Malaysian manufacturing sector were muted at the end of the third quarter of 2024 as production levels were scaled back at a quicker pace in the midst of broadly stagnant new orders,” said SandP Global Market Intelligence economist Usamah Bhatti.
However, he noted the rate of reduction in output was only modest while demand edged closer to stabilization. As such, the data indicated that GD
P growth in the third quarter continued at a similar trajectory to that seen in the second quarter.
It was also encouraging to see employment conditions improve, as manufacturers acquired more staff in preparation for a purported demand recovery, Usamah added.
Furthermore, he said while the expansion was accompanied by rising inflation, the respective rates of increase were subdued in comparison to the levels seen over the past three years.
“Sentiment stayed positive, with firms expecting higher output in the coming year. Moreover, the degree of confidence strengthened to the highest since January amid hopes of improved demand conditions,” he said.
Source: The Namibia News Agency