Vietnam: Manufacturing PMI falls into contractionary territory for the first time in over two years
October 1, 2015
The Nikkei manufacturing Purchasing Managers’ Index (PMI) fell from 51.3 in August to 49.5 in September. The decrease moves the indicator below the 50-threshold that separates expansion from contraction in business conditions. September’s contractionary reading marks the first decline in business conditions since August 2013.
The monthly figure reflects further declines in output and new orders. New orders decreased only slightly in September; however, new export orders fell for the fourth month in a row. Backlogs of work also fell at the fastest rate in six months. On the upside, firms continued to hire new workers and increase employment in September, and input prices continued to fall, mostly due to falling prices for fuel. Nikkei stated that, “weak demand in the wider region is proving to have a greater detrimental impact on local manufacturers as time goes on and the latest data are in marked contrast to the strong expansions seen earlier this year.”
Author: Robert Hill, Economist