Vietnam: Manufacturing PMI slips to five month low in August
September 3, 2015
The Nikkei manufacturing Purchasing Managers’ Index (PMI) fell from 52.6 in July to 51.3 in August. While still in expansionary territory, the decrease moves the indicator closer to the 50-threshold that separates expansion from contraction in business conditions.
The lower monthly figure came as growth rates for output and new orders decelerated in August as client demand eased. Output expanded at its slowest rate in 10 months, and competitive pressure from a weaker yuan was a factor behind the drop in new orders. Nikkei stated that, “the impacts of the Chinese currency depreciation were felt in the sector, with prices paid for Chinese goods reportedly lower and intensified price competition from firms in China.”
Author: Robert Hill, Economist