KUALA LUMPUR, June 3 (Xinhua) -- Malaysia's manufacturing sector faced further challenges in May as firms continued to report a weakening demand environment, but downward growth pressure eased and expectations towards the next 12 months were their most positive in over five and a half years, according to a survey Monday.
The headline Nikkei Malaysia Manufacturing Purchasing Managers' Index (PMI), a composite single-figure indicator of manufacturing performance, recorded 48.8 in May, slightly down from April's seven-month high of 49.4 but below the long-run average.
"The PMI lost a little ground in May, but remained well above the lows seen earlier in the year, hinting that the worst is hopefully over for Malaysia's manufacturers," said business economist Chris Williamson at IHS Markit, which compiled the survey.
The average PMI reading for the second quarter so far is the highest since the third quarter of 2018, according to him.
"An improvement in companies' future output expectation adds to signs that the business environment has started to brighten again. The improved manufacturing performance should, therefore, help drive faster economic growth of around 5 percent in the second quarter," he added.
