KUALA LUMPUR– The seasonally adjusted S&P Global Malaysia manufacturing purchasing managers’ index (PMI), moved back to under the 50 mark in Sept, posting 49.1 from 50.3 in Aug.
The latest reading was the lowest for a year, according to an S&P statement today.
Averaging 50.0 over the third quarter of the year, the PMI represents a just over five percent year-on-year growth of gross domestic product (GDP) in Malaysia, indicating some loss of momentum, compared to the second quarter.
Similarly, the latest data suggested a softening in the rate of expansion signalled by the official manufacturing data.
Central to the loss of momentum in the latest survey period were reports of waning customer demand. This resulted in a moderation in new orders in Sept, ending a five-month sequence of expansion.
Similarly, new export orders slowed amid weakness in international demand conditions.
S&P Global Market Intelligence economics director, Andrew Harker, said, there were further signs in Sept that, the rebound in growth in Malaysia’s economy, seen earlier in the year, could be losing steam as challenging conditions across the global manufacturing sector limit demand and production at Malaysian firms as well.
“That said, the latest PMI data are still indicative of growth in official data across the third quarter of the year,” he said.
Source: NAM NEWS NETWORK