Malaysia's manufacturing sector recovery moderates further in November
Source: Xinhua | 2020-12-02
The recovery in the Malaysian manufacturing sector continued to lose momentum midway through the fourth quarter of the year, the headline IHS Malaysia Manufacturing Purchasing Managers' Index (PMI) showed Tuesday.
The PMI, a composite single-figure indicator of manufacturing performance dipped fractionally for the fifth month in a row, down from 48.5 in October to 48.4 in November.
According to IHS Markit, this reading signaled a further moderation in the health of the manufacturing sector, although the trend appears to be flattening, while the deterioration was considerably less marked than that seen during the first wave of the pandemic.
IHS Markit chief business economist Chris Williamson said, manufacturers continue to battle against COVID-19 headwinds, with renewed restrictions dampening domestic activity while lockdowns in other countries have limited export growth as well as caused further delays in the supply of materials.
"Crucially, however, the impact is far less severe than seen earlier in the year, suggesting the hit to fourth quarter gross domestic product will be much less marked than we saw in the second quarter," he said.
"Business optimism about the year ahead is also running considerably higher than seen earlier in the year, albeit below the recent peak seen in September, which bodes well for business spending, especially investment, to show greater resilience," he added.