Vietnam skyline

Vietnam PMI May 2018

Vietnam: Manufacturing PMI shoots up to 13-month high in May

The Nikkei Purchasing Managers’ Index (PMI) reported by IHS Markit climbed to a 13-month high of 53.9 in May, up from 52.7 in April. It remains above the critical 50-point threshold that separates expansion from contraction in manufacturing output. Business conditions have now improved for thirty consecutive months and May’s reading signals a faster pace of expansion in the manufacturing sector.

May’s upturn was driven by faster expansions in output, new orders and employment. New orders increased at the sharpest rate in 14 months in May, especially thanks to a surge in new business from overseas markets since the inception of the survey in March 2011. With new orders on the rise, output expanded at the swiftest pace in three months across all three broad sectors, with growth strongest in investment goods. Manufacturers increased their intake of workers at a faster pace in May as backlogs of work climbed. Input costs rose due to higher fuel costs and rising supplier charges. Firms raised their selling prices to transfer the added burden of cost-adjustment onto consumers. Moreover, business confidence picked up in May, with more than half of the respondents expecting a rise in production over the coming year.

Commenting on the manufacturing PMI for April, Andrew Harker, Associate Director at IHS Markit, stated:

“A record rise in new export orders is the key highlight from the latest Nikkei Vietnam Manufacturing PMI, helping to drive growth across the sector. Output price inflation continued to ease as companies often favoured holding down prices to help secure sales rather than passing on sharp rises in input costs.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest