Malaysia's Sep manufacturing PMI at four-month high

Marco Green
October 2, 2019

The IHS Markit India Manufacturing PMI was at 51.4 in September, unchanged from August and thereby posting its joint-lowest reading since May 2018.

This was the eighth successive month that the PMI came in below the 50 mark that separates contraction from expansion.

Rob Dobson, director at IHS Markit, which compiles the survey, said: "The UK manufacturing downturn continued in September, adding to signs that the sector may be sliding into recession".

A global slowdown, trade tensions and uncertainty over Brexit have been widely blamed for the woes of manufacturing firms in Britain and Europe.

"Geopolitical concerns and trade wars are dampening business activity around the world, with key markets such as the USA and eurozone showing increased signs of stress".

On Monday, a private survey showed a slight improvement in China's manufacturing activity in September, but analysts cautioned the uptick is being driven by a rise in domestic orders and will likely be short-lived.

"The downward trend in new orders, which fell the most in more than 10 years, is a particular worry, and continues to drive cutbacks in factory output, employment and prices", IHS Markit economist Phil Smith said.

The downturn in the United Kingdom manufacturing sector continued in September, according to the United Kingdom manufacturing PMI, and although the contraction was shallower than the prior survey month, levels of output, new orders, new export business, and employment all fell further.

According to the report, the September survey comes on the heels of global PMI data showing worldwide economic growth slipping closer to three- year lows mid-way through the third quarter, led by the steepest drop in global trade since 2012.

The Future Output Index was consistent with a relatively strong level of confidence, highlighting that businesses expect production volumes to be higher than present levels over the coming 12 months.

"There appears to have been progress made on large infrastructure projects after months of delays, with some manufacturers reporting more projects going ahead and increased tendering opportunities", the report added.

Business optimism remained at a subdued level in September, despite improving from the series-record low registered in August. "The single biggest way to do that is to open up the new export orders", he said.

Other reports by Click Lancashire

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