Malaysia’s manufacturing suffers sharpest decline in three years
KUALA LUMPUR, Dec 1 — Manufacturing conditions in the country worsened last month at the highest rate of deterioration in over three years, according to Nikkei Malaysia.
The November PMI from the Markit’s Nikkei Malaysia Manufacturing Purchasing Managers’ Index was 47.0, down from 48.1 in October, as the overall contraction reflected declines in four out of five PMI components — production, new orders, employment and stocks of input.
“Contributing to worsening operating conditions was a sharp decline in production in November,” said the report.
“The rate of decrease was the quickest since October 2012, with a number of firms blaming challenging market conditions and a fall in sales as factors behind the contraction,” it added.
New orders also declined at the fastest rate in the PMI series history to date that was blamed on poor domestic demand, even as new exports increased last month.
Buying activity dropped at the sharpest pace since the PMI survey began in July 2012, while employment contracted for the first time in three months.
“Firms mentioned efforts to cut costs as a factor behind reduced staffing numbers,” said the report.
Cost pressures also remained strong amid an unfavourable exchange rate that led to increased raw material costs, while the rate of inflation was sharp although it eased since October.
“Meanwhile, selling prices rose at the fastest rate in the series history as companies tried to pass on their higher cost burdens on to clients,” said the report.
