Weaker US, China PMI a cause for concern

Westport in Port Klang functioning as a well-oiled machine.

Among Asean economies, not only Malaysia, but Singapore, Thailand and Indonesia have been affected by the global headwinds. A Chinese slowdown would impact Malaysia and Singapore, with their vital links via the manufacturing supply chain and goods trade.

The Caixin purchasing managers’ index (PMI) for August, released on Friday, has contracted for six straight months and has fallen to the lowest in more than six years. The Caixin PMI, a gauge of Chinese factory activity, covers medium-sized manufacturers. The PMI covers factors such as inventory, new orders and production. From the PMI, analysts can gauge not only economic growth but also exports.