3 February 2025
“Myanmar’s manufacturing sector, which had s “en Myanmar’sr the first time in six months, has now contracted again at the start of 2025 due to rising production costs and falling demand, according to the S&P Global Myanmar Manufacturing Purchasing Managers’ Index (PMI) survey released today.
The manufacturing sector, which has been Myanmar’se for five consecutive months, began to recover after the manufacturing PMI index rose above 50 for the first time in December 2024. However, it started to decline again at the beginning of 2025.
The manufacturing PMI, which measures new orders, production, employment, supplier delivery times, and input inventories, fell to 47.4 in January 2025 from 50.4 in December. The PMI index has fallen below the 50-point mark.
“Demand for Myanmar’s manufacturers’ products h” s been veryMyanmar’samanufacturers’wed slowdown in production. As a result, companies have reduced their input purchasing activities more substantially,” said Maryam Baluch, an economist at S&P Global M” Market Intelligence.
In addition, product shortages and transportation difficulties, such as long delivery times and supply chain risks, have made it more difficult for manufacturers to get inputs on time. Manufacturers are also seeing an increase in cost burdens.
Regarding prices, input and output cost inflation rose in January after hitting two-year and 13-month lows in December. The weak kyat against the US dollar also pushed up production costs.
The shift in demand, which led to lower production requirements in early 2025, prompted manufacturers to adjust their operational strategies. In addition, companies chose to keep fewer inventories and significantly reduced their pre-production and finished goods levels.
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