• Malaysia manufacturing PMI resurfaces to growth in August

• Global manufacturing at 75-month high in August

• US manufacturing output improved further

• Eurozone manufacturing activity rises in August on strong demand

• UK manufacturing hit a four-month high in August

• China manufacturing survey beats expectations

• ASEAN manufacturing PMI bounces to growth in August

Malaysia manufacturing PMI resurfaces to growth in August

The Nikkei Malaysia manufacturing PMI rebounded to growth for the first time in four months in August, signaling signs of recovery in the country's manufacturing sector. The composite indicator of manufacturing performance rose above the 50.0 no-change mark to 50.4 in August, up from July’s 48.3 and indicating the first improvement in operating conditions since April.

Manufacturing output rose during August at the fastest rate since February. Although order book volumes failed to increase, the rate of contraction was the weakest since growth was last recorded in April whilst exports rose after a slight fall in July. Purchasing activity fell for the fourth consecutive month in August. The still underwhelming trend in overall sales encouraged firms to utilise existing stocks of purchases for production. Workforce numbers continued to grow in August, with panelists citing positive demand projections as the primary reason for the expansion. Higher production and employment alongside falling new orders helped firms to reduce their levels of outstanding business. Input price inflation eased to the weakest rate since October 2016 in August. Finally, optimism among panelists regarding the coming 12 months reached its highest level since December 2013. Higher production and exports in August, combined with hopes of growth in new orders, were linked to the improvement in the business outlook.

Source: BIMB Securities Research - 5 Sept 2017