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aws全区号(www.2km.me)_Manufacturing returns to recovery

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KUALA LUMPUR: Malaysia's manufacturing sector is back in recovery mode as the IHS Markit Malaysia Purchasing Managers' Index returned to expansion in October after four months of contraction.AmInvestment Bank Research said the indicator's crossing into the growth zone at 52.2 last month suggests the sector is back on track to recovery as the effects of severe pandemic restrictions subside."This also signals the positive development in Malaysia’s overall economic conditions," it added in a Tuesday note.However, the research firm noted that the higher cost price factor had constrained the recovery progress, due to input materials and container shortages.As a result, manufacturers have raised their output price to offset the negative impact.AmInvest said the improved PMI reading was also supported by improving production, new volume orders, surging outstanding orders and an elevated positive outlook.Factors slowing the recovery included contracted employment and slow purchasing activity due to a supply chain crunch."Moving forward, we can expect the sector to continue improving driven by healthy global demand, the reopening of economies, strong commodity prices and steadily outperforming electrical & electronic manufacturers amidst the ongoing supply chain disruption and higher input prices."For the full year of 2021, we are maintaining our projection that the economy will grow in the range of 3.0% to 3.5%," said AmInvest.Meanwhile, MIDF Research said it also anticipates manufacturing activities to be bolstered by domestic demand and robust trade performance.However, it said the sector's growth could be affected by weaker external demand due to slower demand in major trading partners, potentially due to a resurgence of Covid-19 infections and tighter containment measures."Other factors include the rise in production costs, high commodity prices and other supply chain challenges," it said in its Tuesday Economic Brief.
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