KUALA LUMPUR: The headline Nikkei Malaysia Manufacturing Purchasing Managers’ Index (PMI), a composite single-figure indicator of manufacturing performance, registered 47.2 in March, down slightly from February’s reading of 47.6.
The financial information services provider IHS Markit in a statement today said the latest PMI data indicated that Malaysian manufacturers continued to face a challenging business environment at the end of the first quarter.
IHS Markit chief business economist, Chris Williamson said while several key survey gauges fell in March, it was important to bear in mind that when compared against official measures, the survey was still broadly indicative of the economy growing at an annual rate of four percent to 4.5 percent.
“As with many other fast-growing economies, in Malaysia, the PMI gauges have to drop much further below 50 to indicate either a contracting manufacturing sector or a decline in gross domestic product.
“Encouragingly, the survey found companies to have become more optimistic about the year ahead, with expectations of future output growth rising to the highest for nearly a year. Indices of purchasing and inventories consequently came off recent lows as companies started to plan for demand in coming months,” he added. –Bernama
