Vietnam PMI May 2017

Vietnam

Vietnam: Manufacturing PMI drops to 14-month low in May

June 1, 2017

The Nikkei manufacturing Purchasing Managers’ Index (PMI) dropped to a 14-month low as growth in the Vietnamese manufacturing sector eased. May’s reading came in at 51.6, well below April’s 54.1, but still above the crucial 50-point mark that separates expansion from contraction in the manufacturing sector.

May’s drop in the PMI was driven by much weaker growth in output, new orders and employment. Further, input cost inflation eased, while slower growth in demand lead to reduced output prices. Following the developments in the manufacturing sector this month, Andrew Harker, economist at IHS Markit, commented that, “while all these variables remained in expansion territory, confidence dipped to the lowest in almost four years. This suggests some concern among manufacturers that a soft-patch may be around the corner.”

FocusEconomics Consensus Forecast panelists see investment rising 8.3% in 2017, which is unchanged from last month’s forecast. For 2018, the panel expects investment to grow 8.0%.


Author:, Economist

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Vietnam PMI May 2017

Note: Nikkei Purchasing Managers’ Index. Readings above 50 indicate an expansion in the manufacturing sector while readings below 50 point to a contraction.
Source: Nikkei and IHS Markit


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