Vietnam: Manufacturing PMI drops sharply in February on coronavirus impact
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) registered 49.0 in February, down from 50.6 in January, marking a multi-year low and moving below the 50-threshold that signifies improving operating conditions in the manufacturing sector.
February’s decline came on the back of lower output, new orders and employment against a backdrop of weak Chinese demand due to the coronavirus. On the price front, input costs rose due to virus-linked supply disruptions, although output prices fell amid subdued demand.
Commenting on February’s reading was Eliot Kerr, economist at IHS Markit:
“Coronavirus has severely hampered the Vietnamese manufacturing sector in February, both on the demand and supply-side.”
Looking ahead, the viral outbreak will likely continue to hamper activity in the near-term, although the manufacturing sector should recover later in the year.