KUALA LUMPUR: The Purchasing Managers' Index remained unchanged in Dec at 47.1, indicating that both production and new orders in the manufacturing sector declined.
The Nikkei Malaysia PMI described the manufacturing sector as having deteriorated in the final quarter of 2016.
"A decrease in total new orders resulted partly from a drop in international demand, as new export orders declined at the sharpest rate in six months," it said.
The 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.
On the price front, the weak ringgit drove up input prices at the fastest rate since the survey began in July 2012.
A drop in international demand was also reflected in the survey data, with new export orders declining at the sharpest rate since June.
Greater global competition and a challenging worldwide economy contributed to the fall in new export orders, according to panellists.