Malaysia: Manufacturing PMI reaches 10-month high in September
October 1, 2018
The manufacturing Purchasing Managers’ Index (PMI), produced by Nikkei and IHS Markit, increased to 51.5 in September from 51.2 in August. The index thus moved further north of the 50-point threshold separating expansion from contraction in Malaysia’s manufacturing sector.
The improvement in the headline reading came on the back of stronger jobs growth. Moreover, new orders, new export orders and output rose, while business expectations were solid. The manufacturing sector appeared relatively unharmed by the introduction of the new sales and services tax (SST) on 1 September, although firms reported increased cost pressures due to the implementation of the tax, with input prices increasing at the quickest pace in six months. As a result, output prices increased. Furthermore, firms voiced some concern over how the SST could affect future orders.
Author: Jan Lammersen, Economist