Malaysia: Manufacturing PMI ticks up in July; remains in contractionary territory
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 47.8 in July, up marginally from June’s 47.7. As a result, the index remained below the 50.0 no-change threshold, signaling a sustained deterioration in manufacturing sector operating conditions compared to the previous month.
In July, new orders diminished to the greatest extent since January amid downbeat demand, which dampened output and purchasing activity as well. In turn, firms reduced employment levels for the third consecutive month and at the steepest rate so far this year. Price pressures also increased, partially due to currency pressures raising the cost of raw materials. Lastly, optimism regarding output in the next 12 months eased to the lowest level in over two years.