Malaysia PMI August 2020


Malaysia: Manufacturing PMI falls into negative territory in August

September 3, 2020

The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, receded to 49.3 in August, from 50.0 in July. As a result, the index slid below the 50-threshold that separates expansionary from contractionary conditions in the manufacturing sector.

August’s drop was largely attributed to increased job shedding, with firms cutting jobs at the sharpest pace since the inception of the survey in 2012, and stabilizing output after growing in the previous two months, amid still-subdued demand prompted by Covid-19. In addition, new orders continued to moderate, while new export orders deteriorated further owing to the ongoing impact of restrictions in export markets. On the price front, both input cost and output charge inflation softened. Lastly, although businesses remained optimistic in August, sentiment eased as worries over Covid-19 lingered.

FocusEconomics Consensus Forecast panelists see fixed investment declining 12% in 2020, which is down 2.1 percentage points from last month’s forecast. For 2021, the panel expects fixed investment to increase 5.2%.


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Malaysia PMI Chart

Malaysia PMI August 20 20

Note: Malaysia Manufacturing Purchasing Managers’ Index. Readings above 50 indicate an overall increase compared to the previous month while readings below 50 an overall decrease.
Source: IHS Markit.

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