Vietnam: Manufacturing PMI ticks up in June
July 1, 2019
According to data released by Nikkei and IHS Markit, the manufacturing Purchasing Managers’ Index (PMI) rose from 52.0 in May to 52.5 in June. As a result, the index moved further above the critical 50-point threshold that separates expansion from contraction in manufacturing output. Moreover, Q2’s readings averaged higher than in Q1, indicating that the manufacturing sector strengthened, despite U.S-China trade tensions.
June’s uptick came on the back of faster new orders growth and a recovery in employment. Input price inflation was modest, while output prices continued to decline. However, business confidence fell markedly, likely impacted by escalating geopolitical tensions.
According to Andrew Harker, Associate Director at IHS Markit: “The Vietnamese manufacturing sector continues to bob along nicely midway through 2019 […] Ongoing strength in demand encouraged firms to fill positions that had been vacated by resigning staff in May, leading to a return to job creation.”
Author: Oliver Reynolds, Economist