Vietnam: Manufacturing PMI continues to fall in September amid a less favorable external environment
October 1, 2019
According to data released by IHS Markit, the manufacturing Purchasing Managers’ Index (PMI) fell to 50.5 in September from 51.4 in August. However, the index was still marginally above the critical 50-threshold that signifies improving business conditions.
September’s fall came on the back of a slowdown in new orders growth and a fall in output, with weaker customer demand playing a part. Employment levels also fell, ending a recent cycle of job creation, while input price inflation was muted and output prices continued their year-to-date decline.
September’s reading is a sign that the manufacturing sector is not immune to external downside risks, a point made by Andrew Harker, Associate Director at IHS Markit:
"The latest PMI figures show that while the Vietnamese manufacturing sector has been one of the best performers globally in recent months, the slowdown in global trade flows amid trade tensions between the US and China is starting to impact firms negatively as we enter the final quarter of 2019.”
Author: Stephen Vogado, Economist