Vietnam skyline

Vietnam PMI September 2018

Vietnam: Manufacturing PMI drops to 10-month low in September

Vietnam’s manufacturing sector experienced a notable slowdown in September, as reflected by a dive in the Nikkei Purchasing Managers’ Index (PMI) reported by IHS Markit to a 10-month low. The PMI fell from 53.7 in August to 51.5 in September, moving closer to the critical 50-point threshold that separates expansion from contraction in manufacturing output and signifies a marked deterioration in business conditions in the private sector.

September’s lower PMI print reflected weaker upturns in output, new orders and employment, caused by less favorable demand conditions. Manufacturing output grew at the slowest pace in six months, and the rate of inflow of new business, while still firm, also eased from the previous month. New export orders rose at the weakest pace in 16 months. A slowdown in new order growth translated into reduced backlogs of work, which fell for the fourth consecutive month. While firms continued to hire more workers, the rate of job creation was the weakest since August 2017. On the price front, manufacturers’ cost burdens eased, which gave them room to cut their output prices to secure new business amid competitive conditions, ending a one-year period of uninterrupted rise.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest