The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) decreased to 49.2 in November, down from 49.5 in October, indicating a slight slowdown in the sector.

S&P Global noted that the historical link between the PMI and official GDP data suggests continued growth in the final quarter of 2024. However, the data also points to a further deceleration in the annual growth rate of official manufacturing production.

“Hopes of an improvement in market demand were key to optimism regarding the 12-month outlook for output in the penultimate month of the year. The overall level of confidence was little-changed from October, though remained below the long-run average (56.2) amid concern regarding the timing of domestic demand recovery,” according to a statement by S&P published on Monday. 

Furthermore, S&P Global reported that November saw a slowdown in Malaysia's manufacturing sector as demand remained subdued, The Star reports.

It noted declines in new orders, output, and inventories while employment remained largely unchanged.

However, firms indicated stronger overseas demand, leading to a rise in new export orders.

In regard to prices, the rate of input cost inflation further eased in November, reaching a nine-month low, which resulted in a general stagnation of output charges, according to S&P Global.

Meanwhile, manufacturers in Malaysia experienced a general stabilisation in work backlogs, with the seasonally adjusted index reaching its highest level in four months. 

Yet despite weaker demand for inputs, S&P Global noted that firms experienced longer delivery times for the seventh consecutive month in November.