The manufacturing sector in Malaysia fell into contraction in March, the latest survey from S&P Global showed on Friday with a manufacturing PMI score of 49.6.
That’s down from 50.9 in February and it moves beneath above the boom-or-bust line of 50 that separates expansion from contraction.
Survey gauges for both output and new orders signaled further moderations in March, with both gauges showing sharper rates of reduction than in February. Companies reported that high COVID-19 infections and rising raw material prices had weighed on demand and client confidence in domestic and international markets.
New export orders were also muted in March, reducing at the quickest rate for six months as firms cited a lack of logistical capacity, most notably container shortages, and subdued overseas demand linked to the pandemic.