Malaysia Nov factory activity strongest in 3.5 years, lifted by new orders
(Repeats to fix formatting of table)
KUALA LUMPUR, Dec 4 (Reuters) - Data from the Markit
Malaysia Purchasing Managers' Index for October.
Readings above 50.0 signal an improvement in business
conditions while ones below indicate deterioration.
DATA
NOV OCT SEPT AUG JULY JUNE MAY APRIL MARCH FEB
52.0 48.6 49.9 50.4 48.3 46.9 48.7 50.7 49.5 49.4
CONTEXT
* November data showed the strongest expansion of the
manufacturing sector since April 2014, due to solid growth in
output and new orders, on improved domestic and overseas demand.
* Output rose for a fourth straight month, and at the
fastest pace in nearly three years. The rate of expansion for
new orders was the fastest since October 2014, and for export
orders was the strongest since June 2013.
* Input prices rose amid reports of a general increase in
raw material prices, leading to higher output prices.
* Business confidence levels towards the 12-month outlook
for output was the strongest in nearly four years, on positive
projections for stronger demand and new projects.
Aashna Dodhia, economist at IHS Markit, said:
"November data indicated a long-awaited improvement in the
health of the manufacturing sector. The headline PMI rose to its
highest level since April 2014, underpinned by stronger demand
conditions. Subsequently, growth in output and new orders were
the fastest since December 2014 and October 2014 respectively.
"These positive developments fuelled job creation at the
joint-strongest rate since December 2012. Moreover, business
confidence among the manufacturing community was the strongest
in nearly four years.
"Reflecting an increase in overseas demand for Malaysian
goods, new export orders rose at the joint second-fastest rate
in the series history. Overall, growth momentum in Malaysia is
likely to be sustained towards the end of the year."
Reporting by Emily Chow
Editing by Richard Borsuk
Contact info: emily.chow@thomsonreuters.com; +603-2333 8035;
Reuters Messaging: emily.chow.thomsonreuters.com@reuters.net