Malaysia's manufacturing PMI slips to 47.7 in June

KUALA LUMPUR, July 3 (Xinhua) -- Malaysia's manufacturing purchasing managers index (PMI) fell slightly from 47.8 in May to 47.7 in June, indicating a 10th consecutive moderation in operating conditions that was the strongest since January, according to S&P Global Market Intelligence Monday.

The global financial analytics firm said in a statement that the latest PMI showed further moderation in the Malaysian manufacturing sector.

It said the reading suggested that the weaker trends in official data for manufacturing production and gross domestic product (GDP) were sustained throughout the second quarter of the year.

The PMI also indicated output levels scaled back amid stronger moderation in new orders. The input prices rise at the quickest pace for four months and business confidence eases to the lowest since July 2021.

S&P Global Market Intelligence economist Usamah Bhatti said there were further signs in June that business conditions in the Malaysian manufacturing sector remained subdued, thereby holding back production and demand.

While operations are still being helped by an improved supply chain environment, he said inflationary pressures are showing signs of increasing, given a third consecutive acceleration in inflation of average cost burdens.

"Nonetheless, muted demand conditions are weighing on the confidence of manufacturers, as the overall degree of optimism dipped to a 23-month low amid concerns regarding the timing of a demand recovery and how long the current malaise will last," he added.