The IHS Markit Malaysia Manufacturing PMI fell to 49.3 in August 2020 from 50.0 in a month earlier. This was the first contraction in the sector since May, amid public health measures aimed at curbing the spread of the ongoing coronavirus pandemic. Customer demand remained relatively weak, notably in foreign markets. Also, employment was scaled back to the greatest degree in the survey history, while backlogs of work were reduced solidly. Meantime, there was a renewed fall in purchasing activity. Output was stable following a joint-record expansion in June and further growth in July. The suppliers' delivery times lengthened for the ninth successive month but the least since January, amid material shortages, in particular for imported goods. Prices data showed input cost inflation slowed to a three-month low, while output prices rose at a slower rate, amid fragile demand and strong competition. Lastly, sentiment dipped to below the series average.
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.