The Consumer Sentiment Index (CSI) has fallen to an all-time low of 70.2 points in the third quarter of the year, as measured by the Malaysian Institute of Economic Research (MIER).

Previously, the lowest record was 70.5 points, in the second quarter of 2008.

Worsening household income has contributed to this, with a record high of 47 percent reporting lower finances, the MIER finding shows.

This has caused household spending plans to be put on hold, MIER executive director Zakariah Abdul Rashid told a press conference in Kuala Lumpur today.

Zakariah ( photo ) said the people are worried about employment opportunities and job security as well, and these issues too weigh down on sentiments.

"Anxiety is highest among the high-income, urban and eastern households.

"More consumers expect their financial situation to worsen soon," Zakariah added.

The Business Conditions Index (BCI) has also continued its downward trend in the third quarter.

It has lost eight points to settle at 86.4 points as against 94.5 points in the previous quarter.

The MIER findings said that the factors weighing down the index were manufacturing sales, new domestic orders, production and new export orders.

Create line charts

Severe test ahead

"The economic slowdown coupled with the depreciation of the ringgit has cast much uncertainty regarding the future.

"These factors have evidently caused the downturn in sales over the next three months," Zakariah said.

He expects Malaysia's manufacturing sector, which is very export-oriented, to be severely tested in the coming months.

Moving into the fourth quarter, the BCI is expected to indicate a decline in manufacturing activities by 6.7 points.

Related reports

Chinese-bumi income gap narrowing: MIER director

The real issue is disparity within bumi community

What if the opposition resigns en bloc?

Close down Pr1ma, houses too costly: BN MP