S&P Global’s Purchasing Managers’ Index for Vietnam was unchanged in May, according to a press release from the organisation. Currently sitting at 50.3 points, this is above the 50 point breakeven threshold. This signals small but consistent growth.
Key takeaways:
- New orders increased,
- Purchasing activity increased,
- The workforce shrank,
- There was an increase in input cost inflation attributed to higher oil and fuel costs and currency weakness,
- Selling prices were increased for the first time since February,
- Production volumes increased,
- Outstanding business was reduced, and
- Supplier delivery times lengthened attributed to goods shortages related to geopolitical issues.
Overall a relatively positive month for Vietnam’s manufacturing sector and the maintained growth trajectory, however small, is still consistent and may suggest a more stable sector than has been seen over the last year or so.