New orders drive Vietnam's manufacturing PMI up to 52.7 in May

By Nikkei Asia   June 2, 2016 | 11:49 am GMT+7

The Nikkei Vietnam Manufacturing Purchasing Managers' Index, or PMI, rose to 52.7 in May from 52.3 in April, according to a report released earlier this week.

Business conditions in the Vietnamese manufacturing sector have now strengthened in each of the past six months, said the report 

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

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 Laborers work at the Singlun Star garment factory outside Hanoi, Vietnam. Photo by Reuters/Kham

"The strength of new order growth is the highlight from May's release and should help lead to further improvements in output and employment in coming months," said Andrew Harker from Markit.

"It is becoming clearer that the recent period of deflationary pressure has come to an end, but Vietnamese firms have so far been able to restrict the extent to which they have raised their output prices. This could change should the rate of cost inflation continue to build," he added.

 
 
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