Malaysia's manufacturing activity strengthened in March even as the war in the Middle East hindered firms' purchasing activity and led to delay in raw material deliveries, S&P Global said in its monthly purchasing managers' index report Wednesday.
The S&P Global Malaysia Manufacturing PMI rose to 50.7 in March from 49.3 in February, its most marked improvement in nearly four years.
A reading over 50 indicates expansion in activity.
Despite the improvement, S&P Global warned that the ongoing war in the Middle East was subduing demand and confidence had fallen to a seven-month low.
Input costs were also on the rise and total new business business moderated for a second month in March, the firm said.
"The latest PMI data [..] highlights several concerning developments, many of which stem from the ongoing war in the Middle East. Confidence has already fallen to a seven-month low, suggesting that the coming months will bring these concerns further into focus," S&P Global Economist Maryam Baluch said.
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