The IHS Markit Malaysia Manufacturing PMI fell to 50.0 in July 2020 from 51.0 in June but still well above the readings seen during the worst of the Covid-19 downturn and above the survey's long-run average of 49.0. Manufacturing output rose for the second month running, while new orders were unchanged and employment was scaled back for the fourth straight month. Purchasing activity also ticked up, ending a 21-month sequence of decline amid recent signs of improvement in demand. In terms of prices, input cost inflation was the sharpest since October 2018 due to supply shortages for raw materials. Accordingly, selling prices were also raised the most in 20 months. Looking forward, sentiment was down slightly from that seen in June.
Manufacturing Pmi in Malaysia is expected to be 50.00 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing Pmi in Malaysia to stand at 50.00 in 12 months time. In the long-term, the Malaysia Manufacturing Pmi is projected to trend around 49.40 points in 2021 and 48.90 points in 2022, according to our econometric models.