skyline at night in Malaysia

Malaysia PMI January 2021

Malaysia: Manufacturing PMI inches down in January

The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit, edged down to 48.9 in January from December’s 49.1. As a result, the index moved further below the 50-threshold that separates improving from deteriorating conditions in the manufacturing sector.

January’s downturn was largely driven by declining employment levels and moderating new export orders, as surging Covid-19 infections in international markets weighed on demand. Moreover, although manufacturers remained optimistic over output growth in the 12 coming months, confidence was the weakest in five months. On the price front, supply chain disruptions led to a spike in input costs, which rose at the sharpest rate since May 2017, and prompted firms to significantly increase output charges.

Commenting on January’s reading, Chris Williamson, chief business economist at IHS Markit, said:

“Renewed efforts to contain the COVID-19 pandemic both at home and around the world have not surprisingly taken a further toll on the manufacturing sector. Not only is demand coming under further pressure, notably in consumer-facing markets, but supply chains are being disrupted by the restrictions caused by the pandemic. Global demand is exceeding supply for many key inputs as suppliers struggle to boost capacity, with delays exacerbated by a lack of global shipping capacity.”

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