Vietnam: Manufacturing PMI inches down in April
May 3, 2017
The Nikkei manufacturing Purchasing Managers’ Index (PMI) climbed down from 54.6 points in March to 54.1 points in April. Nonetheless, the indicator is still well above the 50-point threshold that separates expansion from contraction in the manufacturing sector, where it has stayed almost uninterruptedly for the last three years.
The slight moderation in the PMI seen in April was mainly driven by relatively-subdued inflationary pressures, while the rest of the sub-components continued to perform remarkably well. As demand for input goods stayed strong, suppliers continued to hike their prices. However, input costs increased at the slowest pace in six months, and manufacturers also increased their sales prices more mildly. Apart from price developments, the situation in the Vietnamese manufacturing sector remains very upbeat, as Andrew Harker, economist at IHS Markit, commented:
“A record rise in exports was the key highlight from the latest Vietnam Manufacturing PMI survey as firms once again displayed a good ability to secure new work in international markets. This success fed through to improvements throughout the sector, with production, employment and purchasing activity all rising solidly in April.”