Businesses reported sustained reductions in production and new orders. The latest rise in Covid-19 cases in Malaysia hampered output and sales, though both declined at the slowest rates for three months, IHS Markit said Wednesday.

The research firm said the August data suggested that output fell among the surveyed companies for the fourth month in a row. Firms commonly attributed the decline to a lack of demand and shortages of inputs causing companies to reduce production.

IHS Markit’s chief business economist, Chris Williamson, said an easing of some Covid-19 lockdown measures in Malaysia helped reduce pressure on manufacturers in August.

“Conditions remain tough for producers, however, with order books continuing to decline, supply chain delays widely reported and raw material prices rising sharply again,” he said.

It was encouraging that business expectations for the coming year improved, as more companies grew optimistic that the worst of the pandemic has passed, he said.

However, concerns over the spread of the Delta variant meant the outlook remains more uncertain than earlier in the year, keeping a lid on the overall degree of optimism, Mr. Williamson said.

Source: https://www.marketwatch.com/story/malaysia-s-manufacturing-downturn-moderated-in-august-271630458179