Vietnam: Manufacturing PMI broadly stable in June
July 1, 2016
The Nikkei manufacturing Purchasing Managers’ Index (PMI) inched down from May’s 12-month high of 52.7 to 52.6 in June. The indicator is resting above the 50-threshold that separates expansion from contraction in business conditions. With the exception of two months in late 2015, the Vietnamese Manufacturing PMI has been in positive territory since September 2013.
The monthly figure reflects solid expansions in new business and output. Output expanded at the fastest pace in eleven months and was driven by a rise in new orders. Increased production resulted in a reduction of backlogs of work and higher staffing levels. Regarding price developments, input prices rose on the back of higher oil prices while output prices decreased for the first time in three months.
Nikkei stated that, “the Vietnamese manufacturing sector continued to build on a positive start to the year in June, with output growth continuing to accelerate on the back of solid expansions in new orders from both home and abroad. Helping firms to secure new business was competitive pricing, in turn facilitated by a moderation of cost inflation in the sector.”