Manufacturing sector sees solid improvement as PMI hits four-month high

10:09 | 14/05/2019 Industry

Vietnam’s purchasing managers’ index (PMI) in April rose to a four-month high of 52.5 from 51.9 in March, signalling a solid monthly improvement in the health of the manufacturing sector, according to a Nikkei/IHS Markit survey.

New orders continued to rise at a solid pace in April - Photo: VGP

A PMI reading of above 50 indicates growth in the manufacturing sector.

Growth was maintained in April as firms were again successful in securing new orders, the PMI report stated, adding that employment rose for the first time in three months and business confidence improved for the second consecutive month.

There were signs of input cost inflation picking up, but firms continued to lower their output prices as part of the efforts to boost customer demand.

New orders continued to rise at a solid pace in April and are predicted to increase further over the coming year, thereby helping to boost sentiment in terms of production volumes.

The report noted that new order growth led to increases in a number of other variables monitored by the survey, including purchasing, employment and output.

Job creation was registered for the first time in three months at the start of the second quarter, while purchasing activity continued to rise solidly.

Commenting on the Vietnamese manufacturing PMI, Andrew Harker, Associate Director at IHS Markit, said that the main positive from the latest survey was a return to employment growth, the first rise in three months, as firms gained confidence that the weak performance at the start of the year is now a thing of the past.

Theo NDO