KUALA LUMPUR, Oct 1 — Malaysia’s manufacturing activity as measured by the Manufacturing Purchasing Managers’ Index (PMI) rose to a four-month high of 47.9 in September, up from 47.4 in August.
Business research outfit IHS Markit said the PMI, which analyses data from about 400 manufacturers in the country, showed overall improvements indicated by an increase in new orders and output.
“This was the first time since April that the headline index has increased.
“At current levels, the PMI is broadly indicative of annual gross domestic product (GDP) growth of between 4.5 per cent and 5 per cent according to historical comparisons,” IHS Markit said in a statement today.
It also said Malaysia’s manufacturing showed signs of stabilising despite a global slump as see in the drop of orders from the export market.
However, data showed existing customers have increased their orders.
Chris Williamson, chief business economist at IHS Markit said that there were some signs pointing to growth by Malaysian manufacturers after an earlier global PMI showing the steepest drop in global trade since 2012.
“Geopolitical concerns and trade wars are dampening business activity around the world, with key markets such as the US and eurozone showing increased signs of stress.
“In this environment, it’s reassuring to see that the Malaysia PMI is indicating only a very marginal easing of growth so far in the third quarter, thanks to the PMI reviving to a four-month high in September, hinting that GDP is likely to continue to expand at a respectable annual rate of 4-5 per cent in the third quarter,” he said.
The Malaysia PMI is compiled from responses to monthly questionnaires sent to purchasing managers in a panel of around 400 manufacturers.
The PMI dataset features a headline number, which indicates the overall health of an economy, and sub-indices, which provide insights into other key economic drivers such as GDP, inflation, exports, capacity utilisation, employment and inventories.