KUALA LUMPUR, April 2 (Xinhua) -- Malaysia's manufacturing Purchasing Managers' Index (PMI) dipped to 48.8 in March, from 49.7 in February, signaling a slight moderation in the health of the sector, according to S&P Global on Wednesday.

S&P Global said in a statement that March saw a moderation in the Malaysian manufacturing sector as demand conditions remained muted.

Slowdowns in production and demand weighed on business confidence, with the overall degree of optimism easing to its lowest point since August 2023, it noted.

The historical relationship between the PMI and official gross domestic product (GDP) data indicates that the first quarter of 2025 will likely see continued growth.

"Malaysian manufacturers remained under pressure at the end of the first quarter of 2025, as the latest PMI data signaled that the sector experienced a slightly steeper moderation in operating conditions," said Usamah Bhatti, economist at S&P Global Market Intelligence.

According to him, new orders faced a renewed reduction, which was the most pronounced in a year, while output, employment, and inventory levels all softened during the month.

Cited panel members, he said the subdued environment was broad-based, as new export orders also fell further, with some evidence suggesting that global trade uncertainty had impacted international demand.

"That said, confidence waned compared to the previous month, with the level of optimism reaching its lowest point in just over one-and-a-half years. Firms pinned their hopes on a broad-based demand and economic recovery but raised concerns regarding the timing of any such recovery," he added. Enditem

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