Vietnam: Manufacturing PMI rises in November as output growth returns
According to data released by IHS Markit, the manufacturing Purchasing Managers’ Index (PMI) rose to 51.0 in November from 50.0 in October. Thus, the index moved above the 50-threshold that signifies improving operating conditions in the manufacturing sector.
November’s increase was based on a return to growth in production, driven by a faster expansion in new orders. New business has now increased every month for the past four years. Furthermore, employment increased in November for the first time in three months. On the price front, input costs increased only marginally, while output prices decreased.
November’s reading offered positive news, a point made by Andrew Harker, associate director at IHS Markit:
“[The results suggest] that the recent soft patch may be coming to an end. Firms are still playing catch-up to some degree from restrictions to output and capacity in recent months, however, seeing backlogs of work continue to rise and needing to use stocks to help supplement production. This bodes well for trends in output and employment in coming months as firms continue efforts to meet ongoing rises in new orders.”