The Nikkei Vietnam Manufacturing Purchasing Managers’ Index, or PMI, eased to 53.7 in August from 54.9 in July, marking the slowest pace of improvement in operating conditions in four months.
According to a report on Nikkei, a reading above 50 signals an improvement, while one below 50 points to a contraction in manufacturing activity.
There are signs that rates of expansion are now easing, though the conditions of the manufacturing sector remains solid.
“Although seeing a slowdown in growth of output in August, the Vietnamese manufacturing sector appears to be on a sound footing at present thanks to an ability to continue to secure strong inflows of new work,” said Andrew Harker, Associate Director at IHS Markit, which compiles the survey.
But less upbeat confidence levels suggest that “concerns around global trade flows may start to impact Vietnamese firms over the coming months.”
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