Illustrative image (Photo: VNA) In its April 3 news release, S&P Global said that renewed falls were seen in output, new orders and employment amid reports of muted customer demand.
The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) posted 47.7 in March, down from 51.2 in February and below the 50.0 no-change mark for the fourth time in the past five months.
It also cited assessments by firms as saying that the pause in growth seen in March was generally reflective of a relatively subdued demand picture. Both total new business and new export orders fell accordingly. The drop in overall new orders was the fourth in the past five months, while new business from abroad dipped for the first time in three months. In turn, backlogs of work decreased at the fastest pace since last November.
Despite signs of weakness at the end of the first quarter of the year, manufacturers remained optimistic that output will increase over the coming 12 months. Business sentiment dipped from February, but was still the second-highest in five months amid hopes for demand improvements and stable market conditions. Some firms also pointed to business expansion plans.
"The softening of conditions in March will hopefully be just a blip, however, with firms remaining confident in the year ahead outlook," said Andrew Harker, Economics Director at S&P Global Market Intelligence.
A sustained period of strengthening cost inflation was brought to an end as pricing pressure was dented by fragile demand, while the recovery in supply chains continued apace, he added./.
VNA
