KUALA LUMPUR: The seasonally adjusted SandP Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) eased to 49.2 in November this year from 49.5 in October, signalling a marginal moderation in the sector.

According to BERNAMA News Agency, 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, 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 domestic demand recovery,” SandP Global said in a statement today.

The report highlighted that November saw a moderation in the Malaysian manufacturing sector as demand re
mained muted. Slowdowns were observed in new orders, output, and stocks, while employment was broadly stagnant. However, firms pointed to firmer overseas demand conditions which resulted in a further increase in new export orders.

On the price front, the rate of input cost inflation eased further in November to reach a nine-month low, translating to a broad stagnation in output charges, SandP Global noted.

Meanwhile, Malaysian manufacturers recorded a broad stabilisation in backlogs of work, with the latest reading of the respective seasonally adjusted index the highest in four months. Despite weaker demand for inputs, SandP Global reported that firms saw longer delivery times for the seventh consecutive month in November.