TOKYO -- Malaysia's manufacturing sector slowed slightly in May with output and new export orders under pressure, according to a survey.
The Nikkei Malaysia Purchasing Manager's Index, or PMI, fell from 49.4 in April to 48.8 in May. Readings above 50 indicate an expansion while those below 50 points to a contraction.
Manufacturing output remained under pressure, reflecting weaker demand overseas especially from Europe, Thailand, Indonesia and the U.S. Purchasing activity also slowed due to an increased focus on cost control amid slower production growth.
Although the PMI fell, it "remained well above the lows seen earlier this year, hinting that the worst is hopefully over for Malaysia's manufacturers," said Chris Williamson, Chief Business Economist at IHS Markit, which compiled the survey.
"An improvement in companies’ future output expectations to the highest for five-and-a-half years adds to signs that the business environment has started to brighten again," Williamson added.
For more information, visit IHS Markit website.