New manufacturing orders rise strongly in July By Phuong Thao HCMC – July recorded strong growth in the Vietnamese manufacturing sector, with the rates of expansion in both output and new orders easing only slightly over those seen in June, according to a report released yesterday by Nikkei and Markit. The headline Nikkei Vietnam Manufacturing Purchasing Managers’ Index (PMI) posted 54.9 in July, marginally down from 55.7 in June but still one of the highest since the survey began in March 2011. Business conditions have remained stable in each of the past 32 months. New manufacturing orders increased substantially in July, with the rate of growth only fractionally weaker than June’s 87-month high. The respondents indicated that the rise in new business was in line with stronger client demand. Meanwhile, the rate of growth in new export orders also rose in July and was only slightly lower than May’s series record. Firms responded to higher new orders by increasing output again during the survey period. The rate of expansion remained sharp, despite easing over the previous month. All three broad sectors saw an increase in output, led by intermediate goods. Andrew Harker, associate director at IHS Markit, which compiled the survey, said Vietnam’s manufacturing PMI remained elevated in July as the sector continued to grow strongly. Supporting the overall expansion in the latest survey period was an accelerated increase in new export orders, he added. Confidence in the future was illustrated by the efforts of firms in building inventory reserves… [Read full story]
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