HANOI, March 1 – Vietnam’s manufacturing activity made a return to modest growth in February, adding to signs that prospects for global demand are improving, according to a report released by S&P Global Market Intelligence on Wednesday.
The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) rose to 51.2 in February up from last month’s reading at 47.4 and breaking back into expansion territory for the first time in three months, said the report.
The rebound in the manufacturing sector was mainly attributed to a renewed rise in new export orders which rose more quickly, expanding for the second month on a brighter international demand, said Andrew Harker, Economics Director at S&P Global Market Intelligence.
Production output, new orders, employment and purchasing activities all returning to growth fuelled business confidence in the year-ahead outlook, he added.
However, while input prices rose at the fastest pace since the middle of last year, and output price inflation was the fastest in eight months, raising concerns that these pressures can dampen demand improvements, according to the latest PMI survey.
S&P Global Market Intelligence is forecasting a rise in Vietnam’s industrial production of 6.6 per cent in 2023.
The PMI index measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion on a monthly basis in the sector, and a reading below implies contraction. Since the index is seen as a good gauge of overall economic health, its survey is closely watched.
