Vietnam: Manufacturing PMI moderates slightly
November 3, 2014
The HSBC manufacturing Purchasing Managers’ Index (PMI) inched down from 51.7 in September to 51.0 in October. As a result, the index is closer to the 50-threshold. However, it still remains in expansionary territory, where it has been for the last 13 months.
Despite the monthly decrease, the manufacturing sector continues to expand. In October, new orders increased for the second consecutive month, although at a slower pace compared to the previous month. October’s result came on the back of a pickup in external demand. HSBC added that it, “expect[s] the sector to continue to grow on better external demand. What’s left is for domestic sectors to kick in, allowing Vietnam to return to its long-run average.”
Author: Dirina Mançellari, Senior Economist