KUALA LUMPUR, March 1 (Reuters) -Data from the Markit Malaysia Purchasing Managers' Index forFebruary.?EUREURReadings above 50.0 signal an improvement in businessconditions while ones below indicate deterioration.
DATAFEBJANDEC49.9 50.5 49.9
CONTEXT* A decline in new orders, reflecting weak demand, led theheadline PMI index to show contraction, though at a marginalrate. The index was swung between expansion and contraction eachmonth since November.* Manufacturers' output rose for a seventh straight month inFebruary on the back of improved economic conditions, but therate of growth was small.* New export orders, which expanded the previous threemonths, contracted slightly in February. Some respondents citedreduced demand from key export markets like Europe and the U.S.* Purchasing activity fell for a third straight month, asinput buying fell in line with lower new orders and subdueddemand conditions.
* Malaysian firms faced higher input cost inflation thanJanuary's 15-month low, with greater cost pressures stemmingfrom currency weakness relative to the U.S. dollar. Outputprices expanded for a 16th straight month, though at the slowestpace in four months.
Aashna Dodhia, economist at IHS Markit, said:
"February data painted a mixed picture as manufacturingconditions stagnated across Malaysia. Output growth wasaccompanied with greater payroll numbers across the sector, butdemand for Malaysian-produced goods at both home and frominternational markets fell slightly.
"On the price front, higher input costs placed furtherpressure on firms' margins as they were restricted in theirability to fully pass on higher cost burdens to price-sensitiveclients."
(Reporting by Emily Chow; Editing by Richard Borsuk)
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