KUALA LUMPUR, Aug 1 — Manufacturers in Malaysia remained optimistic about the second half of 2019 notwithstanding a third straight month of declining input activities, according to Nikkei Malaysia.
Malaysia recorded a score of 47.6 in Nikkei’s Purchasing Managers Index for July, down from 47.8 last month.
A PMI score under 50 denotes contraction while a score above 50 signals expansion.
“The global PMI surveys have indicated the slowest pace of worldwide GDP expansion for three years in recent months, with deteriorating trade flows and reduced business investment acting as major drags.
“It’s therefore no surprise to see Malaysia’s manufacturers reporting tougher operating conditions in this context,” Chris Williamson, chief business economist at IHS Markit, said.
However, Williamson pointed out that both Malaysia’s GDP and its manufacturing sector remain set to expand by around 4.5 per cent for the full year.
Manufacturers polled by Nikkei continue to report expectations of rising orders for the rest of the year, although their optimism has receded from the 68-month high recorded last month.
The firms also said they were being cautious with their hiring activities for the latter half of 2019.
