Malaysia’s manufacturing sector slows at 49.7 in July – PMI

The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) decreased slightly from 49.9 in June to 49.7 in July, indicating a small decline in sector health.

The historical relationship between the PMI and official GDP data suggests that the economy likely continued to grow in the second quarter, albeit at a slower pace than in previous periods.

New orders softened due to weak demand, while international markets expanded for the fourth consecutive month, driven by demand in Asia and Oceania.

Usamah Bhatti, Economist at S&P Global Market Intelligence, said: “Inflationary pressures remained prevalent among Malaysian manufacturers meanwhile, as input price inflation edged slightly up to reach the highest for eight months. This contributed to the strongest rise in output charges since September 2022.”

Attribution: S&P Global Malaysia Manufacturing PMI