Malaysia: Manufacturing PMI falls in June
The S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) fell to 49.9 in June from 50.2 in May. As a result, the index moved below the 50.0 no-change threshold, and signaled a deterioration in manufacturing-sector operating conditions compared to the previous month.
In the latest surveyed month, overall demand remained subdued, leading to a slight reduction in production and unchanged staffing levels. While new orders rose for the second consecutive month, partly fueled by a rise in export sales to Asia-Pacific countries including Australia, the Philippines and Vietnam, the expansion was not strong enough to significantly boost production or employment within the sector.
On the topic of prices, input cost inflation was stable, with prices rising solidly again. Firms responded by raising their selling charges at the fastest rate since September 2022, indicating a willingness to pass on higher costs to consumers. Despite this, business confidence in the manufacturing sector slipped to a ten-month low, driven by a continuous drop in sentiment over the past five months.