The Vietnamese manufacturing sector saw improved growth momentum during February, according to a report released by S&P Global on the morning of March 2.
Production increased at the fastest pace in over a year-and a-half amid a sharper increase in new orders. Stronger rises in both employment and purchasing activity were also recorded, while business confidence hit a 41-month high.
Improved demand for inputs led suppliers to hike their charges, resulting in a sharp increase in manufacturers' input costs. In turn, selling price inflation remained marked. Meanwhile, suppliers' delivery times lengthened amid some reports of customs delays for imported items.
The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) rose to 54.3 in February, up from 52.5 in January and reaching a four-month high.
The PMI signalled a solid monthly improvement in the health of the sector, extending the current sequence of strengthening business conditions to eight months. Manufacturing production increased rapidly in February, with the rate of expansion quickening to a 19-month high. Panellists reported that the preparation of products ahead of delivery to clients and stronger customer demand were behind the latest rise in output.
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