S&P Global said on Thursday that Malaysia Manufacturing Purchasing Managers’ Index (PMI) rose to 51.6 in April from 49.6 in March, indicating a renewed improvement in the sector.
In a statement, S&P said that the uptick in the headline figure was led by a sharp recovery in new order volumes, with the growth of new business hitting an eight-year high.
S&P Global chief business economist Chris Williamson said April saw a welcome surge in demand for manufactured goods with producers reporting the strongest inflow of new orders for eight years, reflecting a combination of improving sales at home and abroad.
However, he said supply constraints in terms of both labor and component availability remain a major headwind to the economic recovery, and mean manufacturers and their suppliers are again unable to meet demand on average, which is, in turn, putting sustained upward pressure on prices.
“In short, manufacturers are seeing signs of reviving demand but their efforts to boost production to meet these new orders continue to be frustrated by shortages, which will likely put further pressure on inflation in the coming months,” he said.
