KUALA LUMPUR, June 3 — Business optimism returned to levels unseen since October 2013 notwithstanding a minor contraction in the manufacturing sector, according to Nikkei Malaysia.
In its Purchasing Managers Index (PMI) for May, Malaysia recorded a score of 48.8, down marginally from the seven-month high of 49.4 in April. A PMI score under 50 denotes contraction while a score above 50 signals expansion.
Despite this, Malaysian manufacturers reported the highest confidence about future output since October 2013 on the back of planned new product launchers and expansion.
“The PMI lost a little ground in May but remained well above the lows seen earlier in the year, hinting that the worst is hopefully over for Malaysia’s manufacturers.
“An improvement in companies’ future output expectations to the highest for five-and-a-half years adds to signs that the business environment has started to brighten again,” said Chris Williamson, chief business economist at IHS Markit, which compiles the survey.
He added that the manufacturing sector’s performance should help propel Malaysia’s economic growth to the 5-per cent mark in the second quarter of 2019.
Extrapolating from historical data, Nikkei Malaysia also projected a full-year growth of 4 per cent for the manufacturing sector.
