KUALA LUMPUR, March 1 (Xinhua) -- The manufacturing conditions in the Malaysian manufacturing sector broadly stagnated during February, according to headline Nikkei Malaysia Manufacturing Purchasing Managers' Index (PMI), which fell to 49.9 in February, from January's 50.5.

IHS Markit, which compiled the survey, said in a report Thursday that the downward movement in the headline PMI index was driven by a reduction in new orders, with survey respondents commenting on weak underlying demand conditions.

The production at Malaysian manufacturers rose for the seventh consecutive month during February. While firms associated the rise in output with improved economic conditions, the growth rate was marginal.

Commenting on the Malaysian Manufacturing PMI survey data, IHS Markit's economist Aashna Dodhia said the February data painted a mixed picture as manufacturing conditions stagnated across Malaysia.

"Output growth was accompanied with greater payroll numbers across the sector, but demand for Malaysian produced goods at both home and from international markets fell slightly," he added.

On the price front, he said, higher input costs placed further pressure on firms' margins as they were restricted in their ability to fully pass on higher cost burdens to price sensitive clients.