New business increased more quickly in October than it did the previous month (Photo: cafef.vn)Hanoi (VNA) - Vietnam’s manufacturing PurchasingManagers’ Index (PMI) climbed from a 10-month low of 51.5 in September to 53.9in October, pointing to the strongest improvement in the health of thecountry’s manufacturing industry since July, IHS Market’s Nikkei reportsreleased on November 1 showed.
The industry moved up a gear in October, with growth ofproduction, headcounts and input purchasing all gathering pace on the back of arobust and accelerated increase in new work. At the same time, the rate of inputcost inflation softened to its lowest since July 2017 and charges were loweredfor the second month in a row.
“Vietnamese manufacturers allayed fears of a protractedslowdown with strong rises in output, new orders and employment all recorded inOctober,” said Andrew Harker, Associate Director at IHS Markit, which compiledthe survey. “The success of firms in continuing to secure greater volumes ofnew work despite signs of weakening global demand stands them in good stead asthe year draws to a close.”
According to the report, all five sub-components of the PMIcontributed to the upward movement recorded at the start of the year’s finalquarter.
New business increased at a quicker pace than in September,supported by favourable demand internally and externally. New export ordersrose at the fastest rate in three months as companies benefited from expansioninto new markets and greater client bases. Subsequently, manufacturers scaledup production for the eleventh month running, with growth the sharpest sinceJuly.
Despite the rise in sales, manufacturers were able to keep ontop of their workloads, as highlighted by a further decline in unfinishedbusiness. One factor that supported the depletion of backlogs was the hiring ofadditional workers. Not only did employment expand for the thirty-first monthrunning, but it also showed the strongest growth since July. According tosurvey participants, job creation was underpinned by new product lines androbust demand.
Vietnamese manufacturers stepped up their outlay on rawmaterials and semi-finished products, with input purchasing expanding at aquicker pace than in September. Strong demand for materials exerted somepressure on supply chains as highlighted by an increase in vendor deliverytimes.
The upturn in purchase quantities aided companies in theirstock building initiatives. Holdings of inputs increased markedly in October,with the pace of accumulation the quickest since the survey started in March2011. Similarly, inventories of finished goods rose and at the quickest pace inalmost three and a half years.
Although input costs continued to increase, the rate ofinflation dropped to its lowest in 15 months, encouraging some producers tolower charges and others to keep prices unchanged. Across the manufacturingeconomy, charges fell for the second straight month, albeit marginally.-VNA
The industry moved up a gear in October, with growth ofproduction, headcounts and input purchasing all gathering pace on the back of arobust and accelerated increase in new work. At the same time, the rate of inputcost inflation softened to its lowest since July 2017 and charges were loweredfor the second month in a row.
“Vietnamese manufacturers allayed fears of a protractedslowdown with strong rises in output, new orders and employment all recorded inOctober,” said Andrew Harker, Associate Director at IHS Markit, which compiledthe survey. “The success of firms in continuing to secure greater volumes ofnew work despite signs of weakening global demand stands them in good stead asthe year draws to a close.”
According to the report, all five sub-components of the PMIcontributed to the upward movement recorded at the start of the year’s finalquarter.
New business increased at a quicker pace than in September,supported by favourable demand internally and externally. New export ordersrose at the fastest rate in three months as companies benefited from expansioninto new markets and greater client bases. Subsequently, manufacturers scaledup production for the eleventh month running, with growth the sharpest sinceJuly.
Despite the rise in sales, manufacturers were able to keep ontop of their workloads, as highlighted by a further decline in unfinishedbusiness. One factor that supported the depletion of backlogs was the hiring ofadditional workers. Not only did employment expand for the thirty-first monthrunning, but it also showed the strongest growth since July. According tosurvey participants, job creation was underpinned by new product lines androbust demand.
Vietnamese manufacturers stepped up their outlay on rawmaterials and semi-finished products, with input purchasing expanding at aquicker pace than in September. Strong demand for materials exerted somepressure on supply chains as highlighted by an increase in vendor deliverytimes.
The upturn in purchase quantities aided companies in theirstock building initiatives. Holdings of inputs increased markedly in October,with the pace of accumulation the quickest since the survey started in March2011. Similarly, inventories of finished goods rose and at the quickest pace inalmost three and a half years.
Although input costs continued to increase, the rate ofinflation dropped to its lowest in 15 months, encouraging some producers tolower charges and others to keep prices unchanged. Across the manufacturingeconomy, charges fell for the second straight month, albeit marginally.-VNA
VNA
