KUALA LUMPUR: The S&P Global ASEAN Manufacturing Purchasing Managers’ Index (PMI) fell for a second straight month in April 2025, registering a reading of below the neutral mark of 50.0 for the first time since December 2023.
"At 48.7, down from 50.8 in March, ASEAN manufacturers experienced a modest, yet the most pronounced, deterioration in operating conditions since August 2021,” S&P Global Market Intelligence said.
S&P Global Market Intelligence economist Maryam Baluch said the April PMI data revealed a concerning picture for ASEAN goods producers, as the sector fell back into contraction for the first time in 16 months.
"Both output and new orders recorded renewed contractions, accompanied by reduced purchasing activity and a deepening downturn in job shedding.
"Even more troubling was the slump in confidence observed in April, which reached a 57-month low, signalling a significant loss in sentiment among manufacturers,” she said.
Baluch said the decline raises concerns about the sector's ability to recover in the near term and suggests that firms may be bracing for further challenges ahead.
According to the statement, the two largest segments of the PMI -- new orders and output -- recorded renewed and solid declines in April, thereby ending a 13- and six-month sequences of growth, respectively.
In both cases, the latest downturns were the most significant in 44 months, it said.
In line with falling manufacturing requirements, S&P Global said firms reduced their purchasing activity for the first time in six months, the fastest since August 2021.
"Reduced purchasing activity meant that input holdings were pared back for the first time in three months.
"Moreover, this reduction in purchasing activity alleviated stress off supply chains, which improved for the first time in a year in April, albeit only fractionally,” said the provider of credit ratings and analytics.
It added that the firms’ confidence levels were the lowest recorded since July 2020. - Bernama
