The manufacturing sector in Malaysia slipped into contraction territory in January, the latest survey from IHS Markit revealed on Monday with a manufacturing PMI score of 48.8.
That’s down sharply from 50.0 in December, and it moves beneath the boom-or-bust line of 50 that separates expansion from contraction.
Individually, manufacturing output was hit by a drop in export demand, while firms cut input purchases amid strong input cost inflation.
However, businesses largely retained an optimistic view towards future output in the coming months.