Thursday 28 Mar 2024
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KUALA LUMPUR (March 1): Manufacturing conditions in the Malaysian manufacturing sector broadly stagnated during February following a marginal expansion at the start of 2018, according to the Nikkei Malaysia Manufacturing PMI.

The headline Nikkei Malaysia Manufacturing Purchasing Managers’ Index, a composite single-figure indicator of manufacturing performance, fell from 50.5 in January to 49.9 in February.

IHS Markit, which compiles the survey today said output and employment both recorded marginal expansions, whilst new orders declined slightly.

It said that on the price front, input cost inflation was sharp and in line with the series trend.

Meanwhile, firms were unable to fully pass on higher cost burdens to price-sensitive customers, it said.

IHS Markit said this indicated a broad stagnation in operating conditions across Malaysia’s goodsproducing sector.

Commenting on the Malaysian Manufacturing PMI survey data, Aashna Dodhia, Economist at IHS Markit, said: “February data painted a mixed picture as manufacturing conditions stagnated across Malaysia.

“Output growth was accompanied with greater payroll numbers across the sector, but demand for Malaysian-produced goods at both home and from international markets fell slightly.

“On the price front, higher input costs placed further pressure on firms’ margins as they were restricted in their ability to fully pass on higher cost burdens to price-sensitive clients,” said Dodhia.

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