Vietnam: Manufacturing PMI dips in May
June 3, 2019
According to data released by Nikkei and IHS Markit, the manufacturing Purchasing Managers’ Index (PMI) dipped from 52.5 in April to 52.0 in May. However, the index remained above the critical 50-point threshold that separates expansion from contraction in manufacturing output.
May’s decline came on the back of lower employment. However, both new orders and output increased at faster rates, while exports also grew. On the price front, input price inflation ebbed, while output prices fell. Business confidence continued to rise in May.
According to Andrew Harker, Associate Director at IHS Markit: “The demand side of the Vietnamese manufacturing sector remained rosy in May, with faster increases in output and new orders recorded. There appear to be issues around the supply of labour, however, with reports of resignations and retirements leading to reduced employment levels in spite of the aforementioned improvements in demand and output requirements”.
Author: Oliver Reynolds, Economist