Malaysia Manufacturing PMI Rises to 6-Month High

2026-11-02 00:51 By Chusnul Chotimah 1 min. read

Malaysia’s S&P Global Manufacturing PMI increased to 51 in October 2026 from 49.9 in September, which marked the first contraction in four months.

It was the strongest growth in factory activity since April, as output and new orders returned to growth.

Growth in new orders was among the fastest in four-and-a-half years, supported by a further improvement in overseas demand.

In response to rising new orders, firms raised employment further and recorded a fresh increase in purchasing activity.

Delivery times deteriorated for an eleventh consecutive month, although at a slower pace than in September.

On the price front, input cost inflation accelerated due to higher transport and material costs linked to the war in the Middle East.

As a result, output cost inflation accelerated as firms passed on higher costs to customers in the form of increased charges.

Finally, business sentiment weakened to its lowest level since April amid uncertain economic and geopolitical conditions.



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Malaysia Manufacturing PMI Rises to 6-Month High
Malaysia’s S&P Global Manufacturing PMI increased to 51 in October 2026 from 49.9 in September, which marked the first contraction in four months. It was the strongest growth in factory activity since April, as output and new orders returned to growth. Growth in new orders was among the fastest in four-and-a-half years, supported by a further improvement in overseas demand. In response to rising new orders, firms raised employment further and recorded a fresh increase in purchasing activity. Delivery times deteriorated for an eleventh consecutive month, although at a slower pace than in September. On the price front, input cost inflation accelerated due to higher transport and material costs linked to the war in the Middle East. As a result, output cost inflation accelerated as firms passed on higher costs to customers in the form of increased charges. Finally, business sentiment weakened to its lowest level since April amid uncertain economic and geopolitical conditions.
2026-11-02
Malaysia Manufacturing Sector Contracts in September
Malaysia’s S&P Global Manufacturing PMI fell to 49.9 in September 2026 from 50.2 in August. This marked the first deterioration in operating conditions since May, as new orders declined for the first time in four months and at the fastest pace since June 2025, while production growth slowed further to its weakest in seven months. The fall in total new orders came despite a fresh rise in new export orders. Firms reduced input purchases for a second month, while supplier delivery times also deteriorated, with vendor performance worsening at the fastest rate in three months. On a more positive note, employment continued to rise modestly, while companies accumulated stocks of purchases. At the same time, input cost inflation eased for a fifth month to its lowest since February, while output price inflation slowed to a seven-month low. However, business confidence remained subdued, with sentiment toward the year-ahead outlook weakening slightly to a five-month low.
2026-10-01
Malaysia Manufacturing Growth Slows in August
Malaysia’s S&P Global Manufacturing PMI edged down to 50.2 in August 2026 from 50.7 in each of the previous two months. Growth in new orders slowed during the month, contributing to a renewed moderation in manufacturing output. Still, firms increased employment for the first time in four months, while backlogs of work fell for a second consecutive month. Meanwhile, buying activity declined for the first time in five months as firms drew on inventories to meet demand, causing input inventories to fall after two months of marginal accumulation. Manufacturers also continued to face longer lead times for inputs, though the incidence of delays was only slight and the least pronounced in seven months. Regarding prices, both input costs and output charges rose modestly in August, with both rates of increase easing to six-month lows and remaining historically subdued. Finally, business confidence remained historically weak and was broadly unchanged from July.
2026-09-01