Business conditions in Malaysia’s manufacturing sector worsened at a stronger pace as Nikkei’s manufacturing PMI edged down to 47.2 in March from 47.6 in a month earlier and reaching the sixth straight month of drop. Latest PMI data indicated that Malaysian manufacturers continued to face a challenging business environment at the end of the first quarter with both output and new orders extended declines. Asian markets were cited as a drag on export sales, while orders from clients in Germany and Japan picked up. Meantime, employment was broadly stable overall, as hiring in some instances was offset by other firms reducing workforce numbers due to softer demand. Regarding inflation, input cost and output price levels were broadly unchanged from February. Against the challenges signalled by latest data, Malaysian manufacturers reported their strongest degree of optimism towards future output in almost one year, supported by forecasts of improved sales, new projects and products and successful new contract tenders. Meanwhile, according to HIS Markit, analysis of comparable historical official data on Malaysian manufacturing output suggests that, at current levels, the survey data are indicative of annual output growth close to 4%.
Source: BIMB Securities Research - 2 Apr 2019
Created by kltrader | Sep 24, 2024
Created by kltrader | Sep 11, 2024