Key insights
- Myanmar's manufacturing sector shows moderate growth, but faces challenges like rising input costs and supply chain disruptions. While not directly impacting US equities, it reflects broader global economic trends. Rising input costs and inflation in Myanmar could contribute to global inflationary pressures, indirectly affecting US monetary policy and potentially leading to tighter financial conditions, which is a slight negative for US equities.
Investing.com -- Myanmar’s manufacturing sector maintained steady growth in March, with the S&P Global Myanmar Manufacturing PMI unchanged at 51.5, matching February’s reading and signaling a moderate improvement in operating conditions.
The first quarter of 2026 marked the strongest quarterly performance since the third quarter of 2023, with operating conditions improving monthly since August.
New orders rose for a third consecutive month in March, with the pace of growth slightly faster than February. Manufacturers reported greater demand from regular customers looking to build inventories, which supported the expansion.
Production increased for a third straight month, with the rate of growth matching that of new orders. The upturn was the strongest in 15 months, though it remained modest overall.
The sustained production requirements led manufacturers to raise purchasing activity for the first time in 33 months, albeit marginally.
Material shortages continued to strain supplier delivery times, which deteriorated at the most marked pace in five months. Companies reduced their pre-production inventories at a stronger pace, with reductions recorded monthly since October.
Employment fell back into contraction territory after a modest increase in February, marking the sixth decline in the past seven months. Manufacturers cited widespread voluntary resignations for the reduction, which was marginal in pace.
Input costs rose markedly in March, with the pace of cost inflation the fastest since August 2024. Manufacturers attributed higher prices to material scarcity, transportation costs, fuel expenses, and an unfavourable exchange rate. In response, companies raised their output prices at an 18-month high.
Backlogs of work accumulated for a 65th consecutive month, though at the softest pace in the current sequence. Labour shortages contributed to the rising backlogs.
Manufacturers’ output expectations softened in March, with the majority indicating they expected to maintain current production levels in the coming months.
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