KUALA LUMPUR: The seasonally adjusted S&P Global Malaysia manufacturing purchasing managers’ index (PMI) was unchanged at 49.5 in October 2024, with new orders rising for the first time since June 2024.
S&P Global said as the index came in slightly below the neutral 50.0 threshold, it signalled a slight softening in business conditions over the month.
"While the latest data pointed to ongoing muted conditions in the sector, the rate of moderation remained only fractional," it said in a statement today.
Meanwhile, it said overall new business rose for the seventh successive month in October 2024, reflecting sustained growth in new export orders.
"Firms noted higher order intakes from customers across Asia-Pacific, including Australia, the Philippines and Vietnam," it said.
Despite the expansion in order books, S&P Global said production levels at Malaysian manufacturers were scaled back for the fifth month in a row on subdued general demand conditions.
On cost inflation, it said although higher raw material costs and unfavourable exchange rate fluctuations resulted in a further rise in input prices in October 2024, the inflation rate eased to a three-month low.
"Concurrently, the rate at which firms increased their selling prices was the slowest since May 2024," it said.
Moving forward, S&P Global said new order growth is expected to be sustained over the coming year, supporting optimism regarding the 12-month outlook for manufacturing production.
Market Intelligence economist Usamah Bhatti said the coming months' outlook appears brighter; firms are hopeful that the renewed increase in orders would be sustained and accelerated.
"That will lead to an eventual recovery in production levels, which bodes well for upcoming official data readings,” he said. - Bernama
