KUALA LUMPUR, Aug. 3 -- Malaysia's factory conditions showed modest improvement in July as new orders continued to rise, according to the latest S&P Global Manufacturing Purchasing Managers' Index (PMI). The seasonally adjusted PMI held steady at 50.7, unchanged from June, signalling mild expansion in activity.

S&P Global economist Maryam Baluch said price pressures had eased, with input costs and selling prices increasing at their slowest pace in five months. The firm noted that the continued strengthening in business conditions suggests official data for the third quarter may reflect "solid expansions" in both GDP and manufacturing output.

Malaysia's economy grew 5.8 per cent in the second quarter, supported by stronger electronics de...