KUALA LUMPUR, Nov 1 — Manufacturing in Malaysia is worsening at a “solid pace” at the start of the last quarter of the year, Nikkei Malaysia said in a report today.
Malaysia’s score in Nikkei’s Manufacturing Purchasing Managers’ Index (PMI) was 47.2 for October, which is a decline from the 48.6 score in September and also way below the series’ average at 49.5.
“As a result, manufacturers cut back on input buying at the quickest rate in four months,” the report said.
A score of above 50.0 indicates an improvement in the manufacturing sector.
“Contributing to the overall decline in manufacturing conditions, production decreased for the nineteenth consecutive month. Moreover, the rate of contraction was sharper than the historical average,” the report stated further.
New orders also declined at the “sharpest rate” in 11 months during October, the report said.
“Data also suggested that a decline in international demand contributed to the overall decrease in incoming new orders,” it said.
However, due to the fall in new orders, manufacturers were able to clear levels of unfinished work for the first time in four months, the report said.
“Suppliers were also able to meet delivery schedules, as lead times shortened for the tenth successive month,” it said.
Input prices rose at the lowest rate in 15 months, and this enabled manufacturers to lower their prices for the first time since January 2015.
Malaysia’s PMI index has remained below 50.0 for all of 2016 so far. It last recorded a score of 50.0 and above in February 2015.
