KUALA LUMPUR: The Nikkei Malaysia Manufacturing Purchasing Managers' Index recorded 47.4 in August from 48.1 in July, signalling a deterioration in operating conditions.
Sharper declines in output, new orders, employment and an improvement in suppliers' delivery times all contributed to the lower figure.
The latest reading was lower than the average over the current 17-month period of figures below the crucial 50.0 no-change mark.
A fall in production was matched by a quicker decline in total new orders and subdued demand conditions was commonly cited as the key factor.
Data also suggested that a fall in international demand contributed to a decrease in total incoming new orders.
The headline PMI is a composite single-figure indicator of manufacturing performance. It is derived from indicators for new orders, output, employment, suppliers' delivery times and stocks of purchases.
Any figure greater than 50.0 indicates overall improvement of sector operating conditions.