The Manufacturing Purchasing Managers Index (IHS Markit) released on February 1 showed that operating conditions in Myanmar's manufacturing sector declined more rapidly at the beginning of 2022 and fell for 17 consecutive months.
"The opening month of 2022 indicates that Myanmar has struggled in the manufacturing sector and the PMI has been in decline for 17 consecutive months. Political instability is further threatening production and domestic demand, and power outages and scarcity of raw materials have led to a record rate of backlog accumulation,” said Shreeya Patel, an economist at IHS Markit.
In January 2022, the most important manufacturing PMI was recorded at 48.5, and last December's PMI fell slightly to 49 and remained below 50 for 17 consecutive months.
New orders from Myanmar manufacturers fell for the 17 consecutive months, the biggest drop in three months.
“Firms will hope that 2022 yields better prospects for Myanmar's manufacturing sector but, for now, cash shortages, material scarcity and political uncertainty are all hindering growth," said economist Shreeya Patel.
In December 2021, Myanmar's manufacturing output was higher than in November, but it remained the most economically affected country in Asia.
Employment rates fell again last November, with 21 out of 22 months, according to the survey.
Despite low production demand and reports of workers returning to their homes, most respondents pointed out that workers were voluntarily leaving in search of better-paying positions.
The survey found that companies were difficult to find skilled workers and raw materials especially, leaving to a record rate of backlog accumulation.
Myanmar's economy remains one of the worst-hit economies in Asia in 2021, according to the IHS Markit Myanmar Manufacturing PMI released on November 1.
Purchasing Managers Index (PMI) are using five indicators such as manufacturing, new orders, workplace, suppliers' delivery time and stockpiles.
The survey is based on original data collected from industry by IHS Markit and sponsored by Japan-based Nikkei Media Group.
