The S&P Global Market Intelligence said in a note on Monday that Malaysia's PMI eased from 49.5 in February to 48.4 in March, signaling a slight moderation in the health of the sector.
According to the statement, the historical relationship between the PMI and official gross domestic product (GDP) data indicates that the first quarter of 2024 will likely see continued growth.
The data are also consistent with a slight improvement in official manufacturing production on an annual basis.
"Malaysian manufacturers remained under pressure in March, as the latest PMI data signaled that the sector sank slightly deeper into moderation, following positive signs at the start of 2024," said Usamah Bhatti, economist at S&P Global Market Intelligence.
According to him, new orders, output and employment were all scaled back to a greater extent, and at the most pronounced rates in the year-to-date.
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