Malaysian manufacturing returns to growth in October
New orders recorded one of their strongest increases in four-and-a-half years, though business confidence weakened as costs rose.
Malaysia's manufacturing PMI climbed from 49.9 in September to 51.0 in October, as stronger orders helped lift production, according to S&P Global. The seasonally adjusted S&P Global Malaysia Manufacturing PMI indicated a return to growth.
The latest improvement was modest but the strongest since April. Manufacturing conditions have now improved in four of the past five survey periods.
Order growth ranked among the fastest recorded over four-and-a-half years. S&P Global attributed the increase to stronger demand from existing customers, alongside further improvement in overseas demand. Production registered its first increase in three months, while finished goods inventories declined for a sixth month as firms used stocks to help meet demand.
Manufacturers added capacity and stepped up purchasing. Employment increased for a third month running, while purchased input stocks rose slightly for a second month. Delays in receiving inputs continued into an eleventh month, with port congestion contributing to the disruption.
Both input costs and selling prices rose more rapidly in October. Transport and material expenses increased, partly because of the Middle East war, and firms passed higher costs to customers. Confidence among businesses fell to its lowest level in six months amid concerns about costs and uncertainty surrounding economic and geopolitical conditions.
