Malaysia Manufacturing PMI - 5 June 2024

Turned positive in May after 20 months below growth threshold

The Manufacturing Purchasing Managers’ Index (PMI) increased to 50.2 in May (Apr: 49.0), marking the first expansion since July 2022

  • The turnaround in the PMI was largely driven by the improvement in job creation, production and new businesses.

Production marginally expanded backed by improved demand conditions

  • New demand orders led by improved external demand following higher export orders boosted the PMI to nudge above the negative threshold.
  • Nonetheless, the purchasing levels remained subdued as firms were cautious in their inventory holdings. Subsequently, this has contributed to the further moderation in the purchase of inventories for the year.