Malaysian manufacturers were increasingly confident as new orders surged in November to their highest in more than three years.
The seasonally adjusted manufacturing purchasing managers index (PMI) rose to 50.1 in November versus 49.5 in October, according to S&P Global, which compiles the gauge. A reading above 50 points indicates activity expansion, while a reading below 50 signals contraction in the sector.
November would also be the first month PMI crossed the 50-point mark since May 2024.
The historical relationship between the PMI and official gross domestic product data suggests that economic growth in the final quarter would be “solid”, S&P Global said.
Malaysia’s economy expanded faster than expected in the third quarter, as domestic demand, its main growth engine, continued to hum while exports chugged on. The central bank is confident that growth for the whole of 2025 will be at the higher end of the projected range of 4.0%-4.8%.
New orders, in particular, rose at their fastest pace since April 2022, encouraging a stronger rise in purchasing activity and boosting staffing levels, said S&P Global economist Usamah Bhatti.
Firms surveyed, however, were held back from raising production levels amid reports of raw material shortages, higher competition and a rising tax burden, he noted.
"Nonetheless, confidence regarding activity in the manufacturing economy surged in the month following positive demand movements,” he said, adding that optimism was at the highest since July 2013 on hopes of business expansions, new product launches and higher customer numbers.
Source: theedgemalaysia