KUALA LUMPUR: The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) eased to 49.2 in November this year from 49.5 in October, signalling a marginal moderation in the sector.
S&P Global said the historical relationship between the PMI and official gross domestic product (GDP) data indicates that the final quarter of 2024 will likely see continued growth. However, the data are also consistent with a further slowing in the rate of increase in official manufacturing production on an annual basis.
"Hopes of an improvement in market demand were key to optimism regarding the 12-month outlook for output in the penultimate month of the year. The overall level of confidence was little-changed from October, though remained below the long-run average (56.2) amid concern regarding the timing of domestic demand recovery," it said in a statement today.
S&P Global said November saw a moderation in the Malaysian manufacturing sector as demand remained muted. It added that slowdowns were seen in new orders, output and stocks, while employment was broadly stagnant, however, firms pointed to firmer overseas demand conditions which resulted in a further increase in new export orders.
On the price front, the rate of input cost inflation eased further in the penultimate month of the year to reach a nine-month low, which translated to a broad stagnation in output charges, said S&P Global.
Meanwhile, Malaysian manufacturers recorded a broad stabilisation in backlogs of work, with the latest reading of the respective seasonally adjusted index the highest in four months. Despite weaker demand for inputs, S&P Global said firms saw longer delivery times for the seventh consecutive month in November. - Bernama
