Kuala lumpur: The seasonally adjusted S and P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) experienced a marginal decline to 49.8 in September, down from 49.9 in August, indicating largely unchanged operating conditions.

According to BERNAMA News Agency, S and P Global reported a sustained increase in new orders, although there was a renewed slowdown in production. Despite the marginal growth in sales, September marked the first time since June 2024 that new orders rose in consecutive months.

The report also highlighted a softer rise in operating expenses, with input price inflation reaching a five-month low due to reduced raw material price pressure. Furthermore, the latest data suggested a slight uptick in gross domestic product (GDP) growth in the third quarter compared to the previous quarter, pointing to ongoing year-on-year improvements in official manufacturing production data.

Sentiment within Malaysia’s manufacturing sector remained positive in September. Expectations of stronger demand conditions and new product launches supported predictions of output growth in the forthcoming year.

S and P Global Market Intelligence economist Usamah Bhatti noted that September saw consecutive increases in new order intakes for the first time in over a year. However, this was tempered by a renewed, albeit slight, moderation in production volumes. Bhatti added that the data suggests GDP growth likely picked up slightly in the third quarter.