China and Malaysia Manufacturing PMIs Diverge in October

In October 2024, Malaysia's manufacturing sector saw its PMI remain unchanged at 49.5, indicating slightly softened business conditions despite a rise in new orders from the Asia-Pacific region. However, production levels continued to decline due to subdued demand, while input cost inflation eased slightly. Meanwhile, China experienced its first manufacturing expansion in six months with a PMI of 50.1, surpassing expectations. This growth in China's manufacturing sector, along with a slight rise in non-manufacturing activity to 50.2, is attributed to recent stimulus measures aimed at stabilizing its $19 trillion economy. Despite these positive signs, China's economic recovery remains fragile, with ongoing deflationary pressures and subdued loan demand. Policymakers are hoping further stimulus will kickstart growth, particularly following a sharp property market downturn and weak consumer confidence.