KUALA LUMPUR (March 1): IHS Markit's Nikkei Asean Manufacturing Purchasing Managers' Index (PMI) fell to 49.6 in February 2019 from 49.7 in the preceding month, as manufacturers saw a further fall in new orders in February.

In a statement today, IHS Markit said although only signalling a marginal reduction, the index was at its lowest since July 2017, as signs of weak demand conditions persisted midway through the first quarter.

"The headline PMI edged down to 49.6 in February, from 49.7 in January, to signal the first back-to-back monthly deterioration in business conditions for over two years. Manufacturers saw a further fall in new orders in February, albeit one that was slightly softer than in January. This was partly due to foreign sales declining for the seventh month running. As such, production at Asean companies rose at the joint softest rate in the current 19-month sequence of expansion.

"However, results continued to differ widely across the region, with four of the seven monitored countries reporting stronger operating conditions in February. Myanmar was top of the rankings, partly due to the sharpest rise in output in ten months. New business meanwhile grew at the steepest rate since May 2018. Malaysia placed sixth, and extended the current run of decline to five months. Singapore remained last with another solid deterioration in operating conditions," IHS Markit said.

Vietnam and Malaysia reported a fall in selling prices. IHS Markit said firms that reduced their charges related this to weak demand conditions and little pressure from input costs.

"The rate of input price inflation was broadly unchanged from January's record low and marginal. Thai and Malaysian manufacturers reported a decline in purchasing costs, owing this to muted demand and discounted bulk buying," IHS Markit said.

The Nikkei Asean Manufacturing PMI is sponsored by Nikkei.