Manufacturing PMI at 48.4 in Ringgit ends lower amid March amid further moderation stronger greenback

The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) slipped to 48.4 in March from February’s 49.5, signalling further moderation in the health of the sector.

In a statement yesterday, S&P noted that demand conditions remained muted and muted demand was also reported in international markets, where sales moderated for an 11th consecutive month.

“Malaysian manufacturers remained under pressure in March, as the latest PMI data signalled that the sector sank slightly deeper into moderation, following positive signs at the start of 2024.

“New orders, output and employment were all scaled back to a greater extent, and at the most pronounced rates in the year-todate,”said S&P Global Market Intelligence economist Usamah Bhatti.

He said the muted demand environment allowed for a supplier improvement, as delivery times shortened to the greatest extent in 10 months.

Meanwhile, the statement highlighted that the historical relationship between the PMI and official gross domestic product data indicates that the first quarter of 2024 will likely see continued growth, while the data are also consistent with a slight improvement in official manufacturing production on an annual basis.

S&P said hopes of a stronger improvement in demand were key to optimism regarding the 12-month outlook for output at the end of the first quarter.

The overall level of confidence eased to the softest since last August, however, as manufacturers highlighted concerns regarding the timing of a hoped-for recovery in demand. – Bernama

ringgit ended lower against the US dollar yesterday as the greenback remained strong despite dovish remarks from a Federal Reserve (Fed) official.

The remarks indicated the US central bank’s stance on interest rate cuts this year.

Traders are now awaiting the US ISM Manufacturing Purchasing Managers’ Index (PMI), which will be released later yesterday, to gauge further market direction, said an analyst.

At 6pm, the ringgit slipped to 4.7285/7325 against the greenback from last Friday’s close of 4.7215/7280.

SPI Asset Management managing director Stephen Innes said while China’s factory activity showed signs of improvement in March, expanding for the first time since September 2023, with the manufacturing Purchasing Managers’ Index (PMI) rising to 50.8 (indicating expansion), the ringgit failed to benefit from the positive news.

“Instead, it remained subdued, influenced by a consistent stream of hawkish commentary from the Fed,” he told Bernama.

At the close, the ringgit was also traded lower against a basket of major currencies.

It depreciated against the euro to 5.1002/1045 from 5.0907/0977 at last Friday’s close, weakened vis-a-vis the British pound to 5.9674/9729 from 5.9548/9630, and was also lower versus the Japanese yen at 3.1232/1260 from 3.1194/1241 previously.

The ringgit was traded mixed against Asean currencies. It fell versus the Thai baht to 12.9793/12.9949 from 12.9712/12.9983 last Friday and slipped against the Singapore dollar to 3.5054/5087 from 3.4987/5040 previously.