"Domestic political uncertainty continued to hold back the United Kingdom construction sector in August, with survey respondents indicating that delays to spending decisions had contributed to the sharpest fall in new work for over 10 years", IHS Markit economist Tim Moore said.
The US tariffs on Chinese goods worth of $110 billion took place on September 01 even if China canceled previously announced tariffs to be levied this month while waiting for the trade talks. The higher above 50 the faster the expansion, while the further below 50 the greater the contraction.
The survey comes after official figures showed India's economy grew at an annual rate of 5 per cent last quarter, its slowest in more than six years and significantly weaker than 5.7 per cent in a Reuters poll.
IHS Markit said its Malaysia Manufacturing PMI is compiled from responses to monthly questionnaires sent to purchasing managers in a panel of around 400 manufacturers.
The survey also showed that sentiment about future output fell to a record low, pointing to pessimism among manufacturers.
However, Howard Archer, chief economic adviser to the EY Item Club, said that could be too pessimistic.
More positive news came from Japan's factory output, with data on Friday showing production bounced more than expected in July, though it was expected to fall again next month, signaling further strains ahead.
Any further sign of weakness in domestic demand could add pressure on the Bank of Japan to ramp up stimulus at its rate review on September 18-19, which follows the European Central Bank's rate decision and that of the U.S. Federal Reserve. The country has also an impending sales tax hike due in October. "The subindex for stocks of purchased items fell further into negative territory, reflecting manufacturers" growing reluctance to replenish inventories.