Latest news with #MalaysiaManufacturingPurchasingManagers'Index
Malaysia Sun
3 days ago
- Business
- Malaysia Sun
Malaysia's manufacturing PMI rises slightly to 48.8 in May
Xinhua 03 Jun 2025, 17:15 GMT+10 KUALA LUMPUR, June 3 (Xinhua) -- The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI) rose slightly from 48.6 in April to 48.8 in May to signal a sustained, albeit softer moderation in operating conditions. S&P Global said in a statement on Tuesday that the health of the manufacturing sector has now softened in each of the last 12 months. "PMI data for May revealed that business conditions in the Malaysian manufacturing sector were muted as production levels were scaled back in the midst of subdued new orders," said Usamah Bhatti, Economist at S&P Global Market Intelligence. He noted that the rates of reduction in both measures eased to three-month lows and were only marginal overall. According to him, manufacturing firms also reported a gradual increase in cost burdens, with average input costs rising at the sharpest rate in six months. Citing survey evidence, he opined that the impact of unfavorable currency movements and the U.S. tariffs on raw material prices had pushed expenses higher, especially from abroad. "Sentiment stayed positive meanwhile, with firms expecting higher output in the coming year," he added.
Malaysia Sun
02-05-2025
- Business
- Malaysia Sun
Malaysia's manufacturing PMI slips in April
KUALA LUMPUR, May 2 (Xinhua) -- The seasonally adjusted S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI) fell slightly from 48.8 in March to 48.6 in April. S&P Global Market Intelligence said in a note on Friday that the PMI signaled a modest weakening in the health of the Malaysian manufacturing sector, which was nonetheless the most pronounced in 2025 so far. That said, given the historical relationship between the PMI and official data, the latest data suggest that gross domestic product (GDP) growth continued as the second quarter of the year got underway, while also pointing to sustained year-on-year improvements in official manufacturing production. "PMI data for the start of the second quarter of 2025 suggest that demand conditions in the Malaysian manufacturing sector remained subdued during April, as production and new order inflows continued to moderate. That said, the data are still consistent with the GDP growth observed in the final quarter of last year continuing," said S&P Global Market Intelligence economist Usamah Bhatti. According to him, further evidence indicates that conditions are likely to remain muted in the short- and medium-term. He noted that firms opted to work through existing orders in the absence of new order growth while also scaling back employment, purchases, and stock holdings. "Inflationary pressures trended downwards once again in April, with average cost burdens rising only mildly, which contributed to a further fractional reduction in charges. However, this was not enough to improve confidence regarding the outlook, as the overall degree of optimism slipped to its lowest level since July 2023," he says, adding that firms expressed concerns about the potential adverse impacts of a muted global economy and U.S. tariffs.
Malaysian Reserve
02-05-2025
- Business
- Malaysian Reserve
Malaysia's factory activity contracts further in April as PMI drops to 48.6 — S&P
MALAYSIA'S manufacturing sector continued to face headwinds in April as the S&P Global Malaysia Manufacturing Purchasing Managers' Index (PMI) slipped to 48.6, down from 48.8 in March, indicating a further — albeit modest — deterioration in sector conditions. According to the latest data released by S&P Global, April's reading marked the lowest point so far in 2025. The continued sub-50 reading — the threshold separating growth from contraction — reflects sustained moderation in demand and production activity at the start of the second quarter. 'PMI data for the start of the second quarter of 2025 suggest that demand conditions in the Malaysian manufacturing sector remained subdued during April, as production and new order inflows continued to moderate,' said S&P Global Market Intelligence economist Usamah Bhatti. Weak domestic and international demand continued to weigh heavily on manufacturers, with firms reporting lower new business inflows for a second consecutive month. External markets, in particular, showed no signs of recovery, further compounding challenges for exporters. Production volumes were cut back for the 11th straight month, with April witnessing the sharpest contraction in three months. In an attempt to manage costs and inventory, many manufacturers chose to reduce purchasing activity and draw down existing stockpiles of both raw materials and finished goods. Employment levels, however, saw only a fractional decline, with companies reporting adequate capacity amid declining backlogs. Delivery times, which had been worsening for nearly a year, stabilised in April – a development attributed more to reduced demand than to improvements in logistics. On the price front, input cost inflation softened, marking the mildest increase in 2025 so far. 'Inflationary pressures trended downwards once again in April, with average cost burdens rising only mildly, which contributed to a further fractional reduction in charges,' Bhatti noted. Despite these signs of easing cost pressures, business sentiment turned increasingly cautious. The degree of confidence among manufacturers regarding output over the next 12 months slipped to its lowest since July 2023. Companies cited concerns over a weak global economic outlook and potential trade disruptions, including the impact of US tariffs. While the PMI continues to indicate contraction, S&P Global said the data remains broadly consistent with continued year-on-year improvements in official manufacturing output and gross domestic product (GDP) growth – a silver lining amid the subdued survey results. Nonetheless, with firms hesitant to invest in expansion and still prioritising inventory reduction and cost containment, industry watchers expect the coming months to remain challenging unless demand – both local and overseas – rebounds meaningfully. — TMR
