Hazy outlook for manufacturing in Q4

Important sector: A weak manufacturing activity will have knock-on effects on the rest of the economy as lower business income and unemployment, coupled with fewer job openings and reduced wage earning, will result in lower consumption activities

PETALING JAYA: The country’s manufacturing activity in the fourth quarter of the year (4Q20) could slow further as fears of a new wave of Covid-19 transmissions could affect factory operations and see delays in investment decisions.

In September, the Purchasing Managers’ Index (PMI), an indicator of the economic health of the manufacturing sector, remained in the contraction region for the third consecutive month with a reading at 49.