The production sector is back to growth

According to the Vietnam March Purchasing Managers Index (PMI) report released by IHS Markit Business Information Analysis and Provider yesterday (1), my country's production sector returned to its growth momentum at the end of the first quarter. The PMI index has risen to 53.6 points, while the PMI index in February only reached 51.6 points, indicating that the prospects for the production sector have greatly improved.

Production, the number of new orders, and exports have all surged, leading to an increase in purchasing activities and employment. Among them, business confidence has hit a new high in nearly 20 months. The number of new orders has risen for 7 consecutive months and is the fastest growing month since July 2019. Among them, several customers have upgraded their mid-month orders. International demand has improved, and as a result, the number of new foreign orders has increased, reaching a new high since November 2018.

However, the report also shows that interruptions in the supply chain continue to affect the production sector and increase inflationary pressures. The cost of investment was the highest increase in three years, and the selling price became the month with the highest increase in four years.

According to IHS Markit, it is hoped that the new crown pneumonia epidemic will end as soon as possible and customer demand will increase, which will help improve the production outlook and confidence in the next 12 months. In addition, the psychology of the operators also hit a new high since July 2019, and nearly half of the interviewees expressed optimism about the production outlook ◆

Source: cn.sggp

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