KUALA LUMPUR, May 2 — The local manufacturing sector’s decline continued in April as the shrinkage of both output and fresh orders accelerated, according to Nikkei Malaysia.

In its latest Purchasing Manager Index (PMI), Malaysia dipped to 48.6 in April, down further from the 49.5 recorded in the preceding month.

The index considers any score above 50 to be an improvement, while those below signify a contraction.

"This was indicative of a modest deterioration in the health of the sector that was the strongest since October 2017. Notably, the latest decline outstripped the series trend,” Nikkei Malaysia said.

"Central to the overall downturn was a marked reduction in new orders during April. Moreover, the rate of contraction quickened to the fastest since July 2017.”

Respondents cited weak demand as the main factor behind the decline as new orders fell at the fastest rate since December 2016.

Manufacturers also continued to face rising costs, which buyers said have now risen for 39 months in a row.

Factories responded by again raising prices in April, the 18th consecutive month they have done so.

"The recent build-up of inflationary pressures faced by manufacturers softened in April, with input cost inflation broadly in line with the historical average while output charge inflation was solid and the fastest since last September,” said IHS Markit economist Aashna Dodhia who compiled the survey.

She added, however, that the business community’s outlook for the year ahead was at its best since October 2013.

Firms were bullish on the country’s prospects and have responded by continuing to recruit more manpower.