Vietnam’s November PMI Slips to 20-Month Low as Output Softens

Tuan Minh

14:33 01/12/2017

BizLIVE - Manufacturing output stagnates, ending 12-month sequence of growth.

Vietnam’s November PMI Slips to 20-Month Low as Output Softens

Vietnam's factory activity in November signaled the weakest improvement in 20 month.

Vietnam’s Manufacturing Purchasing Managers' Index (PMI), fell to 51.4 in November from October's 51.6, signaling the weakest improvement of business conditions since March 2016, Nikkei and IHS Markit have said in a monthly report.
Readings above the neutral mark of 50.0 indicate an improvement in business conditions while readings below 50.0 point to a deterioration.
The rate of new order growth eased for the second month running in November, with slower increases in both total and export orders.
While new orders continued to rise, the weaker expansion resulted in manufacturers holding production volumes broadly steady. The stagnation in output ended a 12-month sequence of growth, says the report.
The backlog of work dropped for the first time in five months due to the easing rate of new orders growth, but manufacturers continued to hire extra staff at a solid pace.
The report added that firms remained confident regarding the 12-month outlook for production, with predictions of new order growth central to positive forecasts.
A further sharp increase in input costs was recorded during November amid higher prices for raw materials. The rise in input costs led firms to raise their own selling prices, the third month in a row.
“The final quarter of 2017 has been somewhat disappointing for the Vietnamese manufacturing sector so far. After growth eased in October, there were further signs of weakness in November as new orders rose at a weaker pace and output stagnated.
Manufacturers continued to increase staffing levels and purchasing activity at solid rates, however, suggesting that the current soft-patch is expected to be only temporary,” said Andrew Harker, associate director at IHS Markit, which compiles the survey.

TUAN MINH

Từ khóa: Vietnam, PMI

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