KUALA LUMPUR, Sept 2 (Bernama) -- Malaysian manufacturing firms remain optimistic about improvement in output over the coming year, reflecting a solid overall degree of confidence, according to S&P Global.
S&P Global Market Intelligence economist Usamah Bhatti noted that the firms remained unsure regarding the speed of the recovery, with downside risks centred around a muted global economy.
He said that the latest manufacturing purchasing managers’ index (PMI) data suggested that demand conditions in the manufacturing sector remained subdued midway through the third quarter of 2024, as production and new order inflows moderated at a marginal rate.
"That said, the data remain consistent with the gross domestic product growth seen in the second quarter of the year continuing," he said in a statement today.
The seasonally adjusted S&P Global Malaysia manufacturing PMI was unchanged at 49.7 in August, indicating a slight downturn in the Malaysian manufacturing sector.
"However, further evidence suggests that conditions will likely remain subdued in the short term. Firms are opting to work through existing orders, in the absence of new order growth, while also scaling back purchases, employment and stock holdings,” he added.
S&P Global said that demand remained generally subdued in August, with firms scaling back production at a modest rate, nonetheless, the steepest for four months.
It said data from the survey also suggested that the coming months are likely to remain muted, as manufacturers further scale back purchasing activity and wind down stocks of purchases and finished items amid a lack of new orders.
It added that total new business moderated slightly for the second month running, while at the same time, demand conditions in international markets improved for the fifth consecutive month, albeit at the softest rate in the current sequence.
-- BERNAMA
