HSBC: VN’s manufacturing PMI posts 52.3 in June

13:42 | 02/07/2014

VGP – The Vietnamese manufacturing sector continued to see improvements in business conditions in June, according to the Hong Kong and Shanghai Banking Corporation (HSBC).

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The bank said the Purchasing Managers’ Index (PMI) posted 52.3 in June, down slightly from 52.5 in May and signaling a further improvement in business conditions in the sector.

New manufacturing  orders rose for the seventh consecutive month in June. The rate of expansion was solid, but slowed for the second month running.

The enforcement of weight restrictions on trucks added to cost burdens in June. Input prices increased sharply again, albeit at a slightly weaker pace than in May. The tonnage limits also impacted on delivery times, with vendor performance deteriorating sharply again during the month.

Panelists responded to sharp rises in input costs by raising their output prices in June. The increase was modest, but the first since January and the strongest in 15 months.

The rate of job creation in the Vietnamese manufacturing sector remained marginal. Purchasing activity continued to increase, however, the rate of growth eased to the weakest since September 2013. Finally, stocks of finished goods decreased as firms delivered products to clients.

The HSBC Vietnam Manufacturing PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in around 400 manufacturing companies on five of individual indices of new orders, output, employment, suppliers’ delivery times, and stock of items purchased./.

By Khanh Phuong