KUALA LUMPUR: Malaysian manufacturing sector moderated in November with weakened domestic demand, even as new export orders grow, according to S&P Global.
The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI) dipped to 49.2 in November this year from 49.5 in October, signalling a marginal moderation in the sector's health.
Despite the slowdown, S&P Global said the historical relationship between the PMI and official gross domestic product (GDP) data indicates that the final quarter of 2024 will likely see continued growth.
However, it noted that the data are also consistent with a further slowing in the rate of increase in official manufacturing production on an annual basis.
"Hopes of an improvement in market demand were key to optimism regarding the 12-month outlook for output in the penultimate month of the year. "
"The overall level of confidence was little-changed from October, though remained below the long-run average (56.2) amid concern regarding the timing of a domestic demand recovery," it said in a statement today.
According to S&P Global, slowdowns were seen in new orders, output and stocks, while employment was broadly stagnant.
Incoming new business eased to the largest degree in seven months.
However, firms pointed to firmer overseas demand conditions, leading to a further increase in new export orders.
On the price front, the rate of input cost inflation eased further to a nine-month low, resulting in a broad stagnation in output charges.
Meanwhile, backlogs of work stabilised, with the latest reading of the respective seasonally adjusted index the highest in four months as limited capacity placed some strain on capacity.
Purchasing activity, stocks of inputs and inventories of finished goods all declined, although the rates of reduction eased in the month.
Despite weaker demand for inputs, delivery times extended for the seventh consecutive month, dragged by the ongoing disruption in the Red Sea.