Vietnam Manufacturing PMI rises to 53.5 in February

Marco Green
March 3, 2018

While the rate of growth in overall customer demand signified by the New Orders component moderated in tandem with the headline PMI, respondents to the survey reported a pick-up in orders from overseas customers, with the New Export Orders index strengthening to a three month high.

The non-manufacturing purchasing managers' index slipped to 54.4 in February from 55.3 in January.

The Eurozone manufacturing sector continued to expand at a robust pace in February but the pace of growth slowed from January, final data from IHS Markit showed Thursday.

Chinese policymakers are counting on growth in services and consumption to rebalance their economic growth model from its heavy reliance on investment and exports.

Manufacturers boosted their purchasing activity slightly in February. Where selling prices were raised, there were reports of passing on higher cost burdens to clients, said the survey. Rising production came on the back of growing new orders.

The sector, however, showed a hike in output as it rose for seventh straight month in February albeit at a small rate, due to improved economic conditions.

Individually, there were softer rises in production and new business, but new order growth remained sharp and underpinned the steepest rise in backlogs in nearly eight years. "Charge inflation eased to the slowest rate in 11 months amid signs of fragile domestic demand conditions and greater competition". Where employment increased, this was mainly linked to higher output requirements. This was also reflected in a rise for the future output index. The index barely budged, posting a 50.2 score, only just above the 50 no-change mark, its smallest increase in more than a year and half, IHS Markit said in a press release. Meanwhile, stocks of finished goods decreased, but at a marginal pace that was the weakest in the current eight-month sequence of decline.

Inflationary pressures intensified in February.

Most notably, suppliers' delivery times lengthened at a substantial pace with the sub-index measuring performance deteriorating to 40.9 to 43.8. Vietnamese manufacturers remained optimistic that output would increase over the coming year in line with company plans.

Other reports by Click Lancashire

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