PMI surpasses 50-point mark in August
VGP - Viet Nam's Purchasing Managers’ Index hit 50.5 in August for the first time in six months as some signs of recovery in demand supported by renewed increases in both new orders and production.
Viet Nam's Purchasing Managers’ Index hit 50.5 in August - Illustration photo
S&P Global reported that manufacturing production returned to growth in August, ending a five-month period of falling output. However, the rate of increase was only marginal.
Firms expanded their purchasing activity accordingly, but employment continued to fall marginally as firms were reluctant to take on extra staff given still fragile demand.
According to S&P Global, the nascent recovery in the health of the sector reflected tentative signs of demand improving.
Manufacturers recorded a first increase in new orders for six months, while new export business also rose following a five-month sequence of decline. Growth rates were modest, however, amid some reports of ongoing demand fragility.
Similarly, manufacturing production returned to growth in August, ending a five-month period of falling output. However, the rate of increase was only marginal.
Recoveries in output and new orders were most keenly felt in the investment goods category.
Andrew Harker, economics director at S&P Global Market Intelligence, said that the latest S&P Global Viet Nam Manufacturing PMI paints a more encouraging picture regarding the health of the sector than had been the case in recent months, with output, new orders, exports and purchasing all returning to growth./.
