The seasonally adjusted manufacturing Purchasing Managers' Index (PMI) slipped to 50.3 in August from 50.6 in July, indicating a softer improvement in the health of the sector, S&P Global said in a statement.
The latest reading is representative of a gradual slowdown in growth of manufacturing production and gross domestic product (GDP) towards the end of the third quarter, following sustained rises throughout the second quarter of the year.
S&P Global Market Intelligence chief business economist Chris Williamson said the Malaysian manufacturing sector reported improved business conditions for the tenth time in the past 11 months during August, though clearly remains under pressure from raw material and labor shortages, rising prices and weak demand, notably from overseas.
"Fortunately, there are signs that supply constraints are starting to ease and price pressures are also abating," he said.
Similarly, despite falling export demand, he said August saw new orders rising at a slightly increased rate, which should feed through to improved production growth in September - something which is supported by the brighter outlook indicated by the lifting of business optimism to a seven-month high.
Latest comments