Vietnam: Manufacturing PMI rises in March
April 1, 2016
The Nikkei manufacturing Purchasing Managers’ Index (PMI) rose from 50.3 in February to 50.7 in March. The indicator remains above the 50-threshold that separates expansion from contraction in business conditions. With the exception of two months in late 2015, the Vietnamese Manufacturing PMI has been in positive territory since September 2013.
The monthly figure mainly reflects expansions in new orders and output. The rise in new orders came on the back of stronger customer demand, especially from foreign markets. Higher new orders contributed to an increase in manufacturing output. Employment, on the other hand, dropped marginally in March after increasing for three consecutive months. Regarding price developments, input costs increased for the first time since June while output costs dropped at the slowest rate in 18 months.
Nikkei stated that, “the Vietnamese manufacturing sector posted a solid but unspectacular performance in March, as has been the case throughout the first quarter of the year. […] Meanwhile, the recent run of falling input costs came to an end, but firms are still able to benefit from a relatively weak inflationary environment to maintain their competitive position.”