KUALA LUMPUR (Nov 2): October saw renewed growth in output and new orders, signalling a fresh improvement in Malaysia's manufacturing health, according to the latest S&P Global purchasing managers index (PMI) data.

"Growth in new orders was solid and supported by a further improvement in international demand for Malaysian manufactured goods. 

"Higher inflows of new work in turn underpinned a renewed expansion in output. Firms as a result lifted their purchasing activity, and employment growth was maintained," according to S&P Global's statement on Monday.

Despite improved demand and production, business confidence fell to a six-month low, while input costs and output charges rose at faster rates in October. 

The seasonally adjusted S&P Global Malaysia Manufacturing PMI rose to 51.0 in October from a neutral 49.9 in September, entering growth territory.

The sector's health improved in four of the last five survey periods, with the latest modest gain the most marked since April. 

The reading signals continued growth in industrial production and gross domestic product in the final quarter. 

Production and new orders rose together in October, with new order growth among the fastest in four and a half years, reversing September's brief moderation, as improved demand from existing customers drove the rise. 

Production grew for the first time in three months, partly met from finished goods stocks, which fell for a sixth month. 

Firms raised capacity, marking a third straight month of employment growth and higher purchasing activity. Input delays persisted for an eleventh month, partly due to port congestion. 

Purchase stocks rose marginally for a second month. Higher transport and material costs, partly linked to the Middle East war, pushed up expenses and were passed on to customers. 

Cost concerns and uncertain economic and geopolitical conditions weighed on business confidence.