KUALA LUMPUR, July 1 -- Malaysia's manufacturers faced growing cost pressures in June, with input prices rising at the fastest pace in seven months.

The S&P Global Malaysia Manufacturing PMI ticked up to 49.3, signalling a softer moderation in business activity.

While the index remained below the neutral 50.0 level, it marked the sector's strongest performance since February.

"June data indicated a gradual move to stabilisation in the health of the Malaysian manufacturing sector, although operating conditions remained challenging," Usamah Bhatti, economist at S&P Global Market Intelligence, said.

"Firms recorded sustained, albeit softer moderations in demand and production that were the softest in four months."

However, manufacturers...