By Chester Tay
Malaysia’s manufacturing sector slowed in January, with the Omicron variant creating new headwinds for manufacturers around the world, affecting demand and exacerbating existing and unprecedented supply chain delays, IHS Markit said on Thursday.
The IHS Markit Manufacturing Purchasing Managers’ Index fell to 50.5 in January from 52.8 in December, indicating demand eased at the start of 2022 as price and supply pressures having dampened production and new orders.
Nonetheless, the slowdown appears to be only mild compared to previous pandemic waves and is likely to be short-lived as employment levels stabilize and businesses grow increasingly confident that production can increase over the next 12 months. , said IHS Markit.
The latest reading is representative of a solid expansion in manufacturing output and gross domestic product, with the survey pointing to a broad recovery from the impact of Covid-19, he added.
Foreign demand for Malaysian manufactured goods moderated but remained supported by pockets of demand in the United States
Malaysian manufacturers are increasingly optimistic about the improving long-term outlook, with business expectations for the year ahead nearing the highest since the start of the pandemic, said chief economist Chris Williamson.
Write to Chester Tay at [email protected]