Restrictions in line with current COVID-19 regulations have resulted in the decline of manufacturing and new orders in Myanmar, said IHS Markit.
The London-based information provider released a statement that said regulations introduced to curb the spread of the COVID-19 virus have also resulted in a record high of unfinished works.
Manufacturing and the receipt of new orders declined further In December 2020. The pandemic has also resulted in factory closures and low demand experienced by Myanmar’s manufacturing
sector, said IHS Markit.
The number of labour force and purchase of inputs have also been cut further, they added.
“The latest data showed signs of promise for Myanmar’s manufacturing sector and decline in manufacturing and new orders was gentle in December,” said Shreeya Patel, an economist from the firm
Myanmar’s Purchasing Managers’ Index was 44.7 in December, up from 43.2 in November, indicating that the decline of the manufacturing sector was softer.
In December, local demand was still weak and the receipt of new orders fell for four consecutive months.
Strong inflationary pressures led companies to pass higher cost burdens onto clients for the first time since February, said IHS Markit.
Decline in new orders and the labour force, coupled with a shortage in raw materials, led to a sharp increase in incomplete works, the fastest to be recorded since the survey began in December 2015
The statement, however, noted that there are expectations for businesses to grow in 2021 with space in the market for the expansion and promotion of new projects and products.
They added that Myanmar manufacturers have also expressed hopes that demand from customers will recover.
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Source : Myanmar Times
