Malaysia: Manufacturing PMI unchanged in December
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) was unchanged at November’s 47.9 in December. Consequently, the index remained below the 50.0 no-change threshold, signaling a continued deterioration in manufacturing sector operating conditions from the previous month.
December’s below-threshold reading stemmed from persistently weak demand conditions at the end of 2023 which dampened both output and new orders. In turn, firms scaled back purchasing activity. Meanwhile, vendor performance weakened due to reported raw material shortages. More positively, job creation rose for the first time in eight months.
On the price front, input cost inflation eased in December but remained elevated due to currency weakness. As such, firms raised output charges only fractionally. Meanwhile, optimism in the sector was broadly stable since September as firms remained cautious of downbeat demand conditions.