KUALA LUMPUR: The headline IHS Markit Malaysia Manufacturing Purchasing Managers’ Index (PMI), a composite single-figure indicator of manufacturing performance, recorded 47.4 in August, a fractional decline from July’s 47.6.
In a statement, IHS Markit said at current levels, the PMI is broadly indicative of annual gross domestic product (GDP) growth of approximately 4.5 percent.
IHS Markit chief business economist Chris Williamson said the recent subdued Malaysian PMI readings, in part, reflected ongoing global trade tensions, which have led to a weakening in the pace of economic expansion globally.
“The worldwide PMI surveys have indicated the slowest worldwide GDP growth for three years in recent months, led by falling manufacturing output.
“Encouragingly, Malaysia’s manufacturers have become increasingly optimistic that the tide will soon turn and that demand will strengthen again in coming months,” he added.
The level of new work received from external markets stalled in the latest survey period, contributing to sustained weakness in the New Orders Index considering intense competitive pressures, reduced workloads from clients in other key export markets and global trade war worries reported as drags on sales. – Bernama
