Vietnam’s PMI reached a nine-month high of 52.3 in April. (Photo: Internet)
Vietnam’s Manufacturing Purchasing Managers’ Index (PMI
) climbed to a nine-month high of 52.3 in April from 50.7 in March thanks to a surge in new orders, according to a news release by Nikkei and Markit.
The latest improvement in operating conditions was driven by a solid expansion in new business. Moreover, the rate of growth was the sharpest since July 2015 thanks to increased client demand.
New export orders also continued to rise in April. Increasing new business contributed to a fifth consecutive monthly rise in manufacturing production. The rate of growth was modest, but quickened to the fastest in nine months.
Manufacturers recorded a marked increase in input costs during April, with the rate of inflation quickening to the sharpest since August 2014. Panelists reported higher costs for raw materials, with steel mentioned in particular, according to the report.
Purchasing activity increased in April, with firms linking higher input buying to rising production requirements. Purchasing has now expanded in each of the past five months.
“The recent soft patch in the Vietnamese manufacturing sector appears to have come to an end, according to latest PMI data which showed the strongest improvement in the health of the sector since July last year. Of particular note was a solid expansion in new orders,” said Andrew Harker, at Markit, which compiles the survey.
“Something else that looks to have come to an end is the recent period of weak inflationary pressures, with input prices rising at the fastest pace in 20 months during April,” Harker added.