Malaysia: Manufacturing PMI remains stable in April; conditions continue to deteriorate
The S&P Global Manufacturing Purchasing Managers’ Index (PMI) was unchanged at 48.8 in April. As such, the index remained below the 50.0 no-change threshold, signaling a prolonged deterioration in manufacturing sector operating conditions.
April’s print revealed mixed signals from the Malaysian manufacturing sector. On the one hand, demand remained muted last month, causing another decline in production and new orders and depressing purchasing activity. Moreover, the unfavorable demand environment led manufacturers’ confidence to slump to a four-month low.
On the other hand, April’s drop in output was the mildest since August 2022, and the moderation in new business was unchanged from March. Additionally, export orders registered the first positive reading in nine months, pointing to an improvement in international demand. Job creation also increased in April, contributing to a reduction in backlogs. Meanwhile, price pressures increased only slightly, allowing firms to cut their output costs.