Vietnamese PMI declines slightly on falling orders
VOV.VN - Vietnam’s Manufacturing Purchasing Managers' Index (PMI) dropped slightly to 49.9 in March after its improvements in the previous two months, according to index provider Standard & Poor’s Global (S&P Global).
As reported by S&P Global, subdued demand led to falls in output and new orders. Also, new export orders shrank the most since last July due to competitive pressures and geopolitical issues.
S&P Global’s report points out that firms had cut their purchasing activity for the fifth month, resulting in a solid drop in stocks of inputs. Concurrently, employment rose at the fastest pace since October 2022.
Outstanding business also depleted for the second month, with the rate of decline being the steepest in five months. Delivery times were also broadly unchanged as overseas shipping delays were canceled by vendors who already had sufficient inventory holdings to meet orders.
According to S&P Global’s survey, on the cost front, input prices rose the least since last August and were weaker than average. In addition, selling prices fell for the second time over the past three months.
The S&P Global Vietnam Manufacturing Purchasing Managers’ Index measures the performance of the manufacturing sector and can be derived from a survey of 400 manufacturing companies.
It is based on five individual indexes with the following weights including new orders at 30%, output at 25%, employment at 20%, suppliers’ delivery times at 15%, and stock of items purchased at 10%.
