Kuala Lumpur: Malaysia’s manufacturing sector conditions improved midway through the second quarter of 2024, with the seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) rising to 50.2 in May from 49 in April.
S&P Global Market Intelligence said in a statement on Tuesday the latest data signalled a renewed improvement in manufacturing sector conditions following 20 months of moderation, Xinhua news agency reported.
The latest PMI reading also suggested that Malaysia’s gross domestic product (GDP) growth is running at a slightly improved rate than that seen in the first quarter of 2024, as well as pointing to modest year-on-year improvements in official manufacturing production data.
S&P Global Market Intelligence Economics Associate Director Jingyi Pan noted it was encouraging to see employment conditions improve with manufacturers acquiring more headcounts on account of rising new orders.
“And while the expansion in new orders and production was accompanied by rising inflation, the rates of increase in both input costs and output prices were subdued by historical standards,” she said.
She said that overall sentiment also stayed positive, with firms expecting higher output in the coming year.
“That said, the level of confidence eased, and affected manufacturers’ willingness to acquire input inventories. These will be areas to monitor for further signs of a turnaround,” she added.
IANS
Comments are closed.