KUALA LUMPUR (Feb 2): The Nikkei Malaysia Manufacturing Purchasing Managers' Index (PMI) rose to 50.5 in January 2018 from 49.9 in December 2017, helped by a rise in new business, IHS Markit said today.

IHS Markit said in a statement today new export orders for the Malaysian manufacturing sector rose for the third consecutive month in January 2018. IHS Markit, which compiled the data from the local manufacturing sector, said a reading above 50 for the Nikkei Malaysia Manufacturing PMI indicates expansion while a figure below 50 shows contraction.

"Following a broad stagnation in December, manufacturing conditions improved at the start of 2018, albeit only marginally. The overall upturn was mainly driven by a renewed rise in new business. In response to greater inflows of new work, firms raised their payroll numbers during January.

"Despite easing slightly, input cost inflation remained sharp overall. Subsequently, firms raised their average selling prices to pass on higher cost burdens to customers," IHS Markit said.

Nikkei is the sponsor of the Nikkei Malaysia Manufacturing PMI.