• Malaysia manufacturing PMI hits four month high in December

• Global manufacturing growth stays close to decade highs in December

• US manufacturers reported a strong end to 2020

• Eurozone manufacturing PMI ends 2020 on strong note

• UK manufacturing PMI hits 3-year high in December due to stockpiling, supply chain disruption

• China’s manufacturing PMIs softened in December

• Japan manufacturing sector stabilises at end of 2020

• Asian manufacturing powerhouses surged

Malaysia manufacturing PMI hits four month high in December

Malaysian manufacturers pointed to a renewed path towards stable operating conditions in the final month of 2020 as the IHS Markit manufacturing PMI rose from 48.4 in November to 49.1 in December, indicating a further step towards an improvement in the health of the manufacturing sector. The latest reading was the highest seen since August. December data suggested that output and new orders remained subdued. The respective rates of moderation were broadly similar to those seen in November, as market demand continued to be dampened by the impacts of the COVID-19 pandemic. Foreign demand for Malaysian manufactured goods also fell back, albeit with the pace of the reduction easing as some firms reported returning orders from markets outside Asia. More positively, Malaysian goods producers signalled a broad stabilisation in employment levels. Preparation for orders in the future required additional capacity, pushing the survey’s employment index to the highest for nine months in December. Looking ahead, Malaysian manufacturers were cautiously optimistic regarding the outlook for output in the coming year. Although firms continued to record positive sentiment, optimism eased to the softest since August. Panel members attributed the positive outlook to hopes of a recovery in both domestic and external demand that would boost production levels over the next 12 months.

Source: BIMB Securities Research - 22 Mar 2021