KUALA LUMPUR, Oct. 2 (Xinhua) -- Malaysia's manufacturing sector ended the third quarter broadly stable, with the S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI) slipping to 49.9 in September from 50.2 in August, marking its first contractionary reading in four months.
The latest reading ended a three-month sequence of improving operating conditions, but signalled a broadly stable environment at the end of the quarter, S&P Global Market Intelligence said in a statement on Thursday.
Based on the historical relationship between the PMI and official gross domestic product (GDP) data, the latest figures suggest GDP should continue to rise solidly in the third quarter, while official manufacturing production is also expected to remain in growth territory, albeit at a slightly slower pace.
Maryam Baluch, an economist at S&P Global Market Intelligence, said September data presented a mixed picture, with employment growth and easing inflationary pressures offset by slower output and new orders and weaker business confidence.
"External uncertainties, notably the ongoing war in the Middle East and El Nino, make the outlook for the year difficult to assess," she said, adding that continued employment growth suggested firms remained willing to expand capacity despite the headwinds. ■