Vietnam: Manufacturing PMI plummets in April
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) registered 32.7 in April, down from 41.9 in March. April’s reading was an all-time low and far below the neutral 50-threshold, signifying worsening operating conditions in the manufacturing sector.
April’s reading was driven by sharp declines in output, new orders and employment, while business sentiment turned negative for the first time in the survey’s history. Both input and output prices declined amid low demand and oil prices.
Looking ahead, a gradual return to a new normality in Vietnam and around the world should help the manufacturing sector recover slowly. However, as Andrew Harker, economics director at HIS Markit, comments: “Whether April proves to be the nadir of the downturn will depend on how firms and their customers respond to an easing of the lockdown and reopening of businesses that have been closed temporarily.”