The output and new orders in April showed five times the decline in the manufacturing sector in Myanmar due to current situations, according to PMI indexes released by IHS Markit on May 3.

The data revealed another substantial decline in the manufacturing conditions across Myanmar, with large parts of the economy remaining closed due to the current situation.

Five components of the PMI indexes are output, new orders, employment, suppliers’ delivery times and stocks of purchases and the indexes are based on the calculation of the five components.

The survey said all   five   of   the   PMI   components   had   positive   directional   influences on the headline figure in April, but four (except for the suppliers’ delivery times) remained well inside negative territory.

The output and new orders both fell at the fifth-fastest rates in the survey history, while stocks   of   purchases   and   employment contracted at the third- and fourth-quickest rates on record, respectively.

The  headline  IHS  Markit  Myanmar  Manufacturing  PMI™  –  a  composite single-figure indicator of manufacturing performance –  rose  from  27.5  in  March  to  33.0  in  April,  indicating  an  eighth  consecutive  monthly  deterioration  in  operating  conditions  at  Myanmar's manufacturing sector.

The purchasing activity declined markedly again in April. Looking ahead, although firms expect output to rise by April 2022 on balance, overall expectations were the weakest in over two years.

Around 60% of firms recorded lower production in April than in March.

A  combination  of  material  shortages,  unfavourable  exchange  rate  movements  and  higher  transportation  costs  led  to  the  strongest rate of input price inflation since November 2018. The weak  demand  environment  made  it  difficult  for  firms  to  pass  on cost burdens, with selling prices increasing only modestly in April.

The survey is carried out by IHS Markit based on the data received from the manufacturing sector and supported by Nikkei Inc from Japan.