Vietnam’s October Manufacturing Growth Dips to 5-Month Low

Tuan Minh

11:21 01/11/2017

BizLIVE - The slowdown was driven by weaker rises in output and new orders.

Vietnam’s October Manufacturing Growth Dips to 5-Month Low

Vietnam's factory activity in October was the lowest since May.

Vietnam’s factory activity slowed in October due to the slowest rise in output for 12 months, and weaker rises in new orders and employment, Nikkei has said in a report.
The country’s latest Manufacturing Purchasing Managers’ Index (PMI) slipped to 51.6 in October, from 53.3 in September.
The reading is the lowest in five months, Nikkei said in a report released Wednesday, noting the health of the sector has strengthened continuously since December 2015.
The report ascribes the weaker improvement in operating conditions to a slower rise in manufacturing output. Production increased at a marginal pace that was the weakest in the current 12-month sequence of expansion.
New orders continued to rise solidly in October, albeit to a lesser extent than in September. New export order growth accelerated, marking the strongest in six months.
The report adds that after having risen at the fastest pace in over six years in the previous month, input costs increased sharply again in October and at a rate that was little-changed from September.
Manufacturers increased their purchasing activity at a solid pace, albeit one that was weaker than in the previous month.
Firms remained optimistic that output will rise over the coming 12 months, linked to predictions of improving market demand and the hitting of company targets. Sentiment was more positive than in September, according to the report.
“The Vietnamese manufacturing sector paused for breath in October, with output rising only marginally during the month. New order growth also slowed, but remained solid amid a faster increase in new export orders,” said Andrew Harker, associate director at IHS Markit, which compiles the survey.
“The manufacturing sector has been a strong performer within the Vietnamese economy so far this year. Therefore, growth will need to rebound from October’s slowdown over the rest of 2017 to help meet the GDP target of 6.7% growth. IHS Markit is currently forecasting a rise of 6.5%,” he added.

TUAN MINH

Từ khóa: Vietnam, PMI

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