Vietnam’s manufacturing status remained positive for a sixth straight month in February with new orders and rising production, HSBC said in a report.
The Purchasing Managers Index, which indicates the operating conditions in the sector based on new orders, output, employment, suppliers’ delivery times, and stock of items purchased, posted 51.0 in February.
It was down from 52.1 in January, the highest level since April 2011, but still signaled an improvement in manufacturing conditions. A fall to below 50 indicates an overall decrease in the operation of the sector.
But the rate of expansion eased to the slowest since last October, with the output rise caused mainly by higher new orders.
The rate of depletion was the fastest in the history of the survey which began in April 2011, and manufacturers continued to employ for the seventh month.
Trinh Nguyen, Asia economist for HSBC, said though the sector continues to show improvement, weakened external demand, especially in China, is a concern.
“This means that although we continue to expect output to continue to expand on higher orders and reduced inventories, Vietnam faces strong headwinds,” she was cited as saying in the report.
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