Vietnam: Manufacturing PMI declines in January
February 2, 2017
The Nikkei manufacturing Purchasing Managers’ Index (PMI) decreased from December’s 52.4 points to 51.9 points in January. The indicator, however, remains above the 50-threshold that separates improvement from deterioration in business conditions, where it has stayed almost uninterruptedly for the last three years.
Growth in output, new orders and employment slowed down in January but still expanded at healthy rates. Client demand was robust, with particularly strong orders from international clients. The rate of job creation and purchasing activity decelerated in January, reflecting more cautionary spending among manufacturers. In fact, input prices continued to increase strongly, putting pressure on businesses’ profit margins. That said, they still managed to hike sale prices in January, but at a more moderate pace than in December.