The seasonally adjusted S&P Global Malaysia manufacturing purchasing managers’ index (PMI) registered 50.4 in June, up from 50.1 in May, signalling a slightly stronger, yet still modest, improvement in the manufacturing sector.
The sector saw overall operating conditions improve at a slightly quicker rate halfway through 2022 so far and production levels stabilised for the first time following five consecutive monthly declines, while new orders rose for the third month running, albeit only fractionally
S&P Global Market Intelligence chief business economist Chris Williamson said Malaysia’s manufacturers reported a steady but unspectacular end to the second quarter, underscoring how the economic recovery has lost some steam compared to the start of the quarter.
“Companies are reporting sluggish export sales and growing concerns over the rising cost of living, especially in terms of rising energy and fuel prices.
“Both input costs and average selling prices are rising sharply again, suggesting inflationary pressures continue to build,” he said in a research note today.
While there was good news in terms of some supply constraints showing clear signs of easing which should help alleviate some industrial price pressures, global energy and food supply have become increasing sources of concern, he noted.
