KUALA LUMPUR, June 3 (Xinhua) -- The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI) rose slightly from 48.6 in April to 48.8 in May to signal a sustained, albeit softer moderation in operating conditions.
S&P Global said in a statement on Tuesday that the health of the manufacturing sector has now softened in each of the last 12 months.
"PMI data for May revealed that business conditions in the Malaysian manufacturing sector were muted as production levels were scaled back in the midst of subdued new orders," said Usamah Bhatti, Economist at S&P Global Market Intelligence.
He noted that the rates of reduction in both measures eased to three-month lows and were only marginal overall.
According to him, manufacturing firms also reported a gradual increase in cost burdens, with average input costs rising at the sharpest rate in six months.
Citing survey evidence, he opined that the impact of unfavorable currency movements and the U.S. tariffs on raw material prices had pushed expenses higher, especially from abroad.
"Sentiment stayed positive meanwhile, with firms expecting higher output in the coming year," he added. ■