Vietnam manufacturing PMI rebounds

TIN LIÊN QUAN
	Hanoi investment conference brings in trillions of VND
	Vietnam ranks 6th on global retail development index

A reading above 50 indicates economic expansion, while a reading below 50 points towards contraction.

"The pickup in growth in the Vietnamese manufacturing sector in June allays some of the concerns that were raised by the marked slowdown seen in May, with a solid rise in new business particularly encouraging," Andrew Harker at IHS Markit said.

“Although slightly down from the first quarter of the year, the average PMI reading over Q2 points to a further solid expansion of Vietnamese manufacturing output. IHS Markit forecast a rise of 6.2 percent in Vietnamese GDP this year, with this data suggesting that the manufacturing sector continues to make a positive contribution.”

According to the survey, the latest reading signaled a solid improvement in the health of the sector and one that was above the average since the survey began in March 2011.

After having slowed significantly in May, the rate of growth in new orders accelerated in June. The latest increase in new business was solid and linked by panelists to strengthening market demand. New export orders also rose at a faster pace in June.

The expansion in total new business reflected growth in the consumer and intermediate goods sectors, with the pace of increase particularly strong in the former. Meanwhile, investment goods firms saw new orders decline.

Vietnam Manufacturing Purchasing Managers’ Index (PMI) rose to 52.5 in June from a 14-month low of 51.6 in May. (Photo: doanhnghiepvn.vn)

New order growth, allied with strengthening client demand, resulted in an eighth successive monthly increase in output. The rate of expansion ticked up from that seen in May.

The rate of job creation also accelerated in June, with manufacturers in Vietnam responding to higher new orders and production requirements. This added operating capacity facilitated the reduction of the work backlog at some companies.

According to the survey, manufacturers raised purchasing activity for the 19-month running, and at a solid pace. This helped lead to an increase in stocks of purchases, with a number of firms mentioning their efforts to build inventory reserves. Post-production inventories also expanded in June, but only slightly as some companies used inventories to help fulfil orders.

"The rate of input cost inflation picked up but remained much weaker than seen in the first three months of the year. Despite higher cost burdens, firms reduced their output prices for the second month running amid reductions in the costs of some inputs and efforts to secure sales," it stated.

Foreign exchange reserves at record high of 42 billion USD Vietnam’s foreign exchange reserves are at an all-time high of 42 billion USD, Le Minh Hung, Governor of the State Bank of Vietnam (SBV), said ...

Inflation forecast to hit 2.6 percent this year Vietnam’s inflation this year is forecasted to reach 2.6 percent barring fluctuations of prices on world markets and adjustment in the cost of public services, ...

CPI drops 0.53% in May The consumer price index (CPI) saw a month-on-month decline of 0.53% and a year-on-year surge of 3.19% in May. This was the largest drop in May ...