Kuala Lumpur: Malaysia's Manufacturing Purchasing Managers' Index (PMI) slipped to 48.6 in April from 48.8 in March as manufacturers reduced purchases and utilized existing stocks of raw materials and finished goods amid a shortage of new orders.

According to BERNAMA News Agency, S and P Global Market Intelligence reported that demand conditions in Malaysia's manufacturing sector remained subdued in April, with both production and new order inflows continuing to moderate. The survey highlighted that firms opted to fulfill existing orders rather than pursue new growth, resulting in scaled-back employment, purchases, and stock holdings.

The report noted that with customer demand remaining weak, manufacturers have reduced production for the eleventh consecutive month. The pace of contraction in April accelerated compared to March, marking the steepest decline in three months, as stocks of finished goods were diminished to meet order requirements.

Despite these challenges, Malaysian manufacturers reported only a slight decrease in employment levels, indicating that companies maintained sufficient capacity. The level of outstanding business also saw a larger reduction compared to the previous month.

S and P Global observed that inflationary pressures eased during April, with average cost burdens rising only slightly, leading to a marginal reduction in selling prices. However, this did not boost confidence, as optimism regarding the future reached its lowest point since July 2023. Concerns lingered over the potential negative effects of a muted global economy and tariffs imposed by the United States.

The S and P Global Malaysia Manufacturing PMI is derived from responses to surveys sent to purchasing managers at around 400 manufacturers, providing insights into the sector's performance and outlook.