Malaysia: Manufacturing PMI decreases in October
November 1, 2022
The S&P Global Manufacturing Purchasing Managers' Index (PMI) came in at 48.7 in October, down from September's 49.1. October's result marked the weakest reading since September 2021. Consequently, the index fell further below the 50.0 no-change threshold, signaling a sharper deterioration in manufacturing sector operating conditions compared to the previous month.
Sluggish demand both at home and abroad underpinned October’s deterioration. New orders growth moderated for the second consecutive month due to the weaker global demand panorama, which pushed firms to scale back output for the third month running and at the sharpest pace since March. Lower input buying and the depletion of inventories in the month further suggest softer expectations for demand ahead. Staffing levels also reduced in October. More positively, price pressures eased, pushing both input costs and output charge inflation to about two-year lows. Moreover, optimism remained strong amid hopes for a recovery in global markets.