Malaysia: Manufacturing PMI ticks up in February
The Manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, rose to 50.9 in February from 50.5 in January. As a result, the PMI moved further above the 50-threshold that separates improving from deteriorating conditions in the manufacturing sector compared to the previous month.
February’s result came amid easing prices pressures and improved output and new orders, with both moderating at a slightly slower pace than in January. That said, staffing levels decreased due to softer demand and lack of available workers. On the price front, although input cost inflation increased at the softest rate in five months on higher prices of raw materials and transportation, firms ultimately passed the costs on to consumers.
Commenting on the release, Usamah Bhatti, economist at IHS Markit, said:
“Demand conditions remained muted due to sustained supply-side constraints, with companies continually reporting widespread issues with raw material shortages and shipping delays, which continued to drive costs higher. Nonetheless, price pressures at least showed evidence of alleviating in the latest survey period, and any signs of the supply situation improving soon would be a welcome sign for goods producers reliant on global supply chains.”