Myanmar manufacturing lifted by higher output, new orders and jobs
Business conditions in Myanmar’s manufacturing sector improved at the start of 2020, according to PMI survey data from IHS Markit. Moreover, the overall rate of growth strengthened following a slight loss of momentum towards the end of last year.
Output, new orders and purchasing activity all increased at faster rates, while employment at manufacturers rose at a near-record pace. The latest survey signalled an ongoing lack of inflationary pressures in the sector. Looking ahead, firms were increasingly confident of higher output over the course of the year.
The PMI rose for the first time in three months to 52.7 in January, from 52.0 in December. The latest figure signalled a solid overall improvement in manufacturing business conditions in Myanmar. It equalled the trend figure set across 2019, which was the highest for a calendar year since the survey began four years’ ago.
Manufacturing production in Myanmar rose for a survey-record fifteenth successive month in January. Moreover, the rate of growth accelerated to the fastest in five months, remaining well above the four-year survey average. Production was again driven higher by growth of new work. The volume of new business increased for the fifteenth month running, and the rate of growth accelerated from December’s three-month low.
January survey data signalled a lack of inflationary pressures in the manufacturing sector. Input prices rose at a marginal rate, while output prices were cut for the second month running.
The forward-looking Future Output Index rose to a six-month high in January, pointing to strengthening confidence in the manufacturing sector at the start of 2020. Companies commented on new products, upgraded machinery and the opening of new sites.
Source: Myanmar Times
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