KUALA LUMPUR (May 5): The S&P Global Asean Manufacturing Purchasing Managers’ Index (PMI) fell to 48.7 in April 2025 from 50.8 in the previous month, as manufacturers saw further drops in output and new orders.

In a statement on Monday, S&P Global said this marked the sharpest deterioration in operating conditions across the region since August 2021.

“April PMI data revealed a concerning picture for Asean goods producers, as the sector fell back into contraction,” said S&P Global Market Intelligence economist Maryam Baluch.

She added, “Both output and new orders recorded renewed contractions, accompanied by reduced purchasing activity and a deepening downturn in job shedding.”

Manufacturers reduced their input purchases for the first time in six months and firms continued to cut workforce numbers for a second straight month during the latest survey period.

A second consecutive month of job shedding was also recorded, with the downturn in April being slightly more pronounced than that seen in March. Staffing levels were cut back only fractionally, but at a rate that was the strongest since April 2024, read the statement.

“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 on supply chains, which improved for the first time in a year in April, albeit only fractionally,” said S&P Global in a statement.

Business confidence also weakened as sentiment regarding the year-ahead outlook dropped to its lowest point since July 2020. Despite this, firms remained cautiously optimistic albeit below historical averages.

On a positive note, S&P Global said cost pressures eased in April.

"Costs rose modestly and at the weakest pace in four and a half years. Charge inflation remained unchanged for the month and was weak overall."

The PMI survey data was collected from April 9 to April 24 across manufacturers in Asean member states.