Vietnam: Manufacturing PMI reaches lowest level in nine months in August
September 3, 2014
The HSBC manufacturing Purchasing Managers’ Index (PMI) inched down from 51.7 in July to 50.3 in August. As a result, the index now stands at its lowest level in nine months. However, the index has been above the 50-threshold for the last 12 months, which indicates expansion in the manufacturing sector.
August’s deterioration came on the back of a decrease in new orders, which in turn were dragged down by weak external and internal conditions. The fall in new orders was the first in nine months. In addition, an increase in prices for transportation led to higher input prices. The higher costs passed on to clients led to the third successive monthly increase in output prices. However, HSBC said that it, “expect[s] output to rebound in Q4 on better demand.”
Author: Dirina Mançellari, Senior Economist