• Malaysia’s manufacturing PMI rises to six-month high in October

• Global PMI signals modest easing of manufacturing downturn for third successive month

• US manufacturers still suffering from China trade fight, tepid global economy

• Eurozone manufacturing PMI remained stuck in its steepest decline

• Manufacturing data suggests UK manufacturing in recession

• China’s manufacturing PMIs diverged and indicates moderate recovery

• Japan’s manufacturing data shows manufacturing malaise continues

• ASEAN manufacturing PMI slips to near four-year low in October

Malaysia’s manufacturing PMI rises to six-month high in October

The underlying trend within Malaysia's manufacturing sector gained traction at the start of the fourth quarter, with the headline index picking up to a six-month high. The manufacturing PMI increased to 49.3 in October, from 47.9 in September, its highest level for six months. The rise in the PMI was driven by new orders and output, with both indicators showing signs of improvement. PMI data indicated a notable step up in the order book trend during October, with the respective index rising to a six-month peak. However, external conditions reportedly became more challenging at the start of the fourth quarter, causing export orders to decline for a second successive month. Nevertheless, with the overall new orders index rising, survey data suggests domestic demand conditions helped provide a key driving force to help offset the external demand downturn. Encouraged by a healthier underlying business environment, the outlook strengthened in October, with firms on balance projecting growth in output over the next 12 months. The improved outlook also led firms to increase their workforces in October. Upward trends in other forwardlooking indicators were also seen at the start of the fourth quarter, with survey data for input purchasing, input stocks and finished goods inventories all moving in a positive direction.

Source: BIMB Securities Research - 5 Nov 2019