The manufacturers in Myanmar expected to restart their production in coming months

16 Jun 2020

Manufacturers in Myanmar are expected to restart production in the coming months after a fall in activity in April and May, according to data firm IHS Markit’s Myanmar Manufacturing Purchasing Manager Index (PMI) report published on June 1.

The PMI - which ranges from 0 to 100 - plummeted to 29.0 in April, from March’s 45.3. Then, the PMI remained below 50.0 in May, as 38.9 in May. A reading above 50 indicates an overall increase compared to the previous month.

It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.

“Myanmar’s manufacturing economy remained heavily impacted by lockdown measures in May, with key indicators for output, new orders and employment all signalling further rapid declines,” said the firm’s economics director Trevor Balchin.

The notable bounce in the headline figure should not be viewed as a recovery, he said, because it merely  reflects a less severe month-on-month downturn than when the lockdown first took effect. At 38.9, the PMI was still the second-lowest on record since the series began in December 2015.

The output, new orders and employment components, accounting for three-quarters of the weight of the PMI, continued to weigh heavily on the headline figure in May as factory operations remained suspended, demand weakened further due to local and international lockdowns and workers continued to return to their hometowns.

Myanmar’s manufacturing industry has been hard hit by the global health crisis, with tens of thousands of workers being laid off. Foreign donors have stepped in to provide temporary cash transfer for some of those who are made redundant.

The economic relief plan released by Daw Aung San Suu Kyi’s government in late April also outlined measures to support manufacturers and workers. However, PMI improvement in Myanmar could be a sign that the most extreme phase of disruption to the goods-producing sector has passed for the 12-month outlook improvement.

“The Future Output Index provides a glimmer of hope that the worst of the disruption has passed, rising slightly since April and further into positive territory. A number of firms reported that they expect to restart production in the coming months,” said Mr Balchin.

 

(The Myanmar Times: https://www.mmtimes.com/news/production-expected-restart-coming-months-ihs-markit.html )

Manufacturers in Myanmar are expected to restart production in the coming months after a fall in activity in April and May, according to data firm IHS Markit’s Myanmar Manufacturing Purchasing Manager Index (PMI) report published on June 1.

The PMI - which ranges from 0 to 100 - plummeted to 29.0 in April, from March’s 45.3. Then, the PMI remained below 50.0 in May, as 38.9 in May. A reading above 50 indicates an overall increase compared to the previous month.

It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.

“Myanmar’s manufacturing economy remained heavily impacted by lockdown measures in May, with key indicators for output, new orders and employment all signalling further rapid declines,” said the firm’s economics director Trevor Balchin.

The notable bounce in the headline figure should not be viewed as a recovery, he said, because it merely  reflects a less severe month-on-month downturn than when the lockdown first took effect. At 38.9, the PMI was still the second-lowest on record since the series began in December 2015.

The output, new orders and employment components, accounting for three-quarters of the weight of the PMI, continued to weigh heavily on the headline figure in May as factory operations remained suspended, demand weakened further due to local and international lockdowns and workers continued to return to their hometowns.

Myanmar’s manufacturing industry has been hard hit by the global health crisis, with tens of thousands of workers being laid off. Foreign donors have stepped in to provide temporary cash transfer for some of those who are made redundant.

The economic relief plan released by Daw Aung San Suu Kyi’s government in late April also outlined measures to support manufacturers and workers. However, PMI improvement in Myanmar could be a sign that the most extreme phase of disruption to the goods-producing sector has passed for the 12-month outlook improvement.

“The Future Output Index provides a glimmer of hope that the worst of the disruption has passed, rising slightly since April and further into positive territory. A number of firms reported that they expect to restart production in the coming months,” said Mr Balchin.

 

(The Myanmar Times: https://www.mmtimes.com/news/production-expected-restart-coming-months-ihs-markit.html )