Malaysia: Manufacturing sector shows signs of recovery in April
The S&P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI) rose to 49.0 in April from 48.4 in March. As a result, the index remained below the 50.0 no-change threshold but signaled a softer deterioration in manufacturing sector operating conditions compared to the previous month.
The slight uptick was driven by a slower reduction in new order inflows and a softer scale-back in production. Employment levels stabilized, ending a three-month sequence of job shedding. This, alongside the first improvement in external demand conditions in a year, suggests a modest recovery trajectory.
On the price front, input price inflation remained stable despite notable rises in raw material prices due to exchange rate weakness. This contributed to a cautious and marginal increase in output prices. Business sentiment was affected by the current demand environment, leading to a decrease in optimism to an eight-month low. However, there is hope among manufacturers that new orders will return to growth.