Malaysia’s manufacturing conditions continued to improve in July as the slowdown in orders and production eased, suggesting that demand was stabilising.
The seasonally-adjusted manufacturing purchasing managers index (PMI) rose for the third consecutive month to 49.7 in July from 49.3 in June, 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.
"Malaysian manufacturers saw pressure on operating conditions soften at the start of the second half of 2025, as the latest PMI data signalled that the sector moved towards stabilisation,” said S&P Global economist Usamah Bhatti.
Further, latest data signalled a renewed increase in purchasing activity. While marginal, the growth in purchasing was the first in exactly three years and the strongest since April 2022, S&P Global noted.
The data indicates that the third quarter of the year got off to a solid start with the economy continuing to expand and is also in line with an increase in official manufacturing production on an annual basis, S&P Global said.
Malaysia’s economy expanded at 4.5% in the second quarter from a year earlier, a tad faster than the 4.4% year-on-year growth in the first three months of the year, as resilient consumer demand offset weaker exports, official flash estimates showed.
Manufacturers surveyed by S&P Global were also optimistic on the outlook for output for the next 12 months, banking on an improvement in market demand. “The overall level of confidence strengthened from June and was the highest for five months,” S&P Global noted.
Source: theedgemalaysia