Myanmar Manufacturing Downturn Eases

The S&P Global Myanmar Manufacturing PMI increased to 48.5 in February 2025, up from 47.4 in January.

Both output and new orders declined, though less sharply than in the previous month.

Workforce reductions persisted as firms struggled with employee resignations.

Additionally, shortages of materials, power, and labour further strained capacity.

Purchasing activity decreased, and inventory levels were significantly reduced.

Moreover, average lead times for inputs have increased continuously for four-and-a-half years, with February seeing the most pronounced delay in three months.

On the pricing front, both input costs and output charges rose sharply.

The depreciation of the kyat against the US dollar presented further challenges for manufacturers, pushing up costs.

Despite these challenges, business confidence reached its highest level since January 2024, with firms optimistic that demand trends would pick up, thus feeding into higher production.