Vietnam's manufacturing expanded for the eighth month in a row. Photo: Internet.
Vietnam’s Manufacturing Purchasing Managers’ Index (PMI
), which measures the country’s manufacturing performance, slid to 51.9 in July, from 52.6 a month earlier, due to slower growth of output, new orders and employment, according to a report.
The reading has been above the neutral 50-mark for an eighth straight month and marked the weakest growth since March, Nikkei and HIS Markit said in a joint release on Monday.
A PMI reading above 50 indicates expansion in manufacturing activity, while one below 50 signals contraction.
Despite a slight slowdown in July, new business continued to increase at a solid pace amid reports of improving client demand. New export orders also expanded further during the month.
“There are two ways of looking at the latest PMI data for Vietnam. The glass half full approach would be to note that the sector continues to expand with new business increasing at a solid pace,” said Andrew Harker, at Markit, which compiles the survey.
“On the other hand, a less positive view would highlight a loss of growth momentum with slower rises in output, new orders and employment recorded in July,” the analyst added.
“This follows a pattern that has been seen a cross much of the past year, with growth picking up and then slowing again a few months later, without a sustained period of strong expansion. Firms will be hoping for demand to solidify during the remainder of 2016 in order to maintain growth.”