Malaysia manufacturing PMI rises to 51.0 as cost pressures intensify
October brought a recovery in orders and output, but manufacturers reported faster increases in input costs and selling prices.
Malaysia’s manufacturing sector moved back into expansion in October, with S&P Global’s headline Purchasing Managers’ Index rising to 51.0 from September’s 49.9. The reading was the highest since April and exceeded the 50-point boundary between growth and contraction.
The survey showed that manufacturers’ input costs and selling prices increased at matching rates, both faster than before. Respondents partly attributed higher freight and raw material bills to the continuing Middle East conflict.
Orders grew at one of the quickest rates recorded in four and a half years, helped by export sales and returning demand from existing domestic customers. Production increased after two months without growth, while employment rose for a third successive month. S&P Global economist Maryam Baluch said demand for AI-related products contributed to the recovery in orders.
Supply constraints remained. Input deliveries became slower for an eleventh successive month, although the deterioration was slightly less pronounced than in September. Manufacturers again highlighted port congestion. Some businesses used existing stocks to meet orders, and finished-goods inventories fell for the sixth month running.
Despite the improvement in activity, business confidence fell to its weakest level since April and remained subdued by historical standards. Manufacturers pointed to rising costs and geopolitical and macroeconomic uncertainty. The survey covered approximately 400 Malaysian manufacturing operations, with responses gathered from October 12 to 26.
