KUALA LUMPUR (Dec 4): MIDF Research expects Malaysian exports of goods to pick up and rebound in 2024, after S&P Global's Malaysian manufacturing purchasing managers index (PMI) rose to 47.9 in November 2023 (October 2023: 46.8), the highest reading in seven months.
In an economic brief on Monday, the research house said the improvement in November was mainly underpinned by a slower fall in output and demand conditions.
It said new orders dropped at the softest pace in three months, but the continued fall reflected still weak domestic and global demand.
Similarly, MIDF said output receded at the softest pace since August 2023.
“Employment extended its contraction into the seventh month, but stabilised, given the slower pace of decline.
“Input cost inflation edged up to a year's high, as result of higher prices of raw materials, and amid weakness in the ringgit,” it said.
Meanwhile, the research house said output prices remained inflationary for the fourth straight month, but the rise was subtle.
“On signs of improvement within the sector, manufacturers' optimism surged to the highest since April 2023.
“We opine the better PMI reading and improved manufacturers’ optimism reflect a more positive outlook for the sector,” it said.