Malaysia: Manufacturing PMI falls but stays above lockdown levels in July
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, receded to 50.0 in July, after jumping to 51.0 in June. Despite the fall, the index still hung on to most of the gains made since the height of the Covid-19-induced slump and points to an ongoing recovery in the sector (April: 31.3). The index now lies on the 50-threshold that separates expansionary from contractionary conditions in the manufacturing sector.
Looking at the details, output rose for a second consecutive month in July, with firms citing an improving trend in new orders in part thanks to the easing of mobility restrictions. Meanwhile, new orders were steady at June’s relatively upbeat level, while firms shed jobs once again in July. Business sentiment fell modestly from June’s level. On the price front, input costs recorded the sharpest rise since October 2018 in July as supply shortages fanned price pressures.