skyline at night in Malaysia

Malaysia PMI December 2022

Malaysia: Manufacturing PMI drops to over one-year low in December

The S&P Global Manufacturing Purchasing Managers’ Index (PMI) came in at 47.8 in December, down marginally from November’s 47.9. December’s result marked the weakest reading since August 2021. Consequently, the index fell further below the 50.0 no-change threshold, signaling a sharper deterioration in manufacturing sector operating conditions compared to the previous month. The PMI thus averaged 48.1 in Q4, which was estimated to be indicative of about 5.0% annual GDP growth in the final quarter of 2022, down notably from the 14.2% recorded in the third quarter.

The manufacturing sector continued to struggle at the end of 2022 due to muted domestic and foreign demand. This resulted in fewer new orders and a steeper drop in output compared to November. Consequently, firms scaled back their purchasing activity and registered the second monthly fall in employment levels in the quarter.

More positively, Malaysian firms benefited from spare capacity and cleared order backlogs at one of the sharpest rates in the index’s history. Moreover, subdued demand eased the pressure on supply chains, with supplier performance stabilizing in December. On the cost front, production prices rose at the softest pace in 31 months, which allowed firms to decrease selling prices. Lastly, output expectations over the upcoming 12 months remained optimistic amid hopes for an uptick in demand in the new year.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest