3 May 2025
Myanmar’s manufacturing sector, which had begun to recover in March, experienced a significant setback in April following an earthquake that severely impacted factories and led to a sharp decline in new orders. This information comes from the S&P Global Myanmar Manufacturing Purchasing Managers’ Index (PMI) survey released on May 2.
The manufacturing PMI index rose to 49.8 in March 2025, near the midpoint benchmark of 50, but fell to 45.3 in April. This drop marks the most significant decline in manufacturing performance in eight months.
The March PMI data indicated a recovery in Myanmar’s manufacturing sector, with the index reaching a high in the first quarter of 2025. However, the earthquake in April caused widespread damage, leading to decreased manufacturing activity. Maryam Baluch, an economist at S&P Global Market Intelligence, stated, “The natural disaster affected manufacturing facilities, and many manufacturers had to temporarily close their factories to address the damage. The demand environment was also negatively impacted, as shown by a significant drop in new orders.”
Furthermore, as manufacturing demand decreased, businesses adjusted their purchasing activities and faced challenges in stabilizing their workforce, with reports of layoffs following the earthquake.
Baluch noted that Myanmar’s manufacturing sector, already weakened by various economic challenges, will continue to confront substantial risks, including rising raw material prices, labor shortages, and political uncertainty, along with the long-term effects of the earthquake.
#Earthquake #PMI #Manufacturing sector #mtnews
