HANOI (Xinhua): Vietnam's manufacturing activity extended its declines in April as companies struggled to find new orders amid weak global demand, according to a report released by S&P Global Market Intelligence on Thursday (May 4).
The S&P Global Vietnam manufacturing Purchasing Managers' Index (PMI) dipped to 46.7 in April from last month's reading at 47.7, well below the 50.0 threshold that separates growth from contraction.
Factory output and new orders have decreased for the second month in a row and at faster paces than last month, the index data showed.
Companies were reported to find it more difficult to secure new orders at the start of the second quarter as export weakness persisted amid a gloomy global outlook.
Overall new orders fell at a quicker pace from the previous survey period while new business from overseas markets contracted again during the month but less than in March, the report found.
The decline in both manufacturing output and new orders led to falls in input purchasing activity and staffing levels, data showed.
"Companies are still optimistic that output will rise over the coming year, although sentiment has faded as new orders have dropped off in recent months," said Andrew Harker, Economics Director at S&P Global Market Intelligence.
Amid signs of cost inflation easing for the second consecutive month in April, raw material prices rose at the softest pace in almost three years, making manufacturers start lowering their prices in an attempt to stimulate demand, the report said.
Easing cost pressures and a subdued demand have given manufacturers a little more breathing room, ending a three-month sequence of output price rises with lower charges seen across the consumer, intermediate and investment goods sectors, according to the report.
