Malaysia’s S&P Global Manufacturing PMI eased to 50.2 in August 2026, down from 50.7 recorded in each of the previous two months. Growth in new orders slowed over the month, leading to a renewed moderation in manufacturing output. Even so, firms expanded employment for the first time in four months, while backlogs of work declined for a second straight month.
At the same time, purchasing activity fell for the first time in five months, as firms drew down existing inventories to meet demand. This shift led to a reduction in input inventories following two months of marginal accumulation. Manufacturers continued to experience longer lead times for inputs, although delays were slight and the least severe in seven months.
On the price front, both input costs and output charges registered modest increases in August. The pace of inflation for each eased to a six-month low and remained historically subdued. Finally, business confidence stayed historically weak and was broadly unchanged from July.
