FINANCIAL TIMES
Vietnamese manufacturing confidence cools on trade fears
Edward White
Business confidence among manufacturers in Vietnam has fallen to its
lowest in at least six years as fears of global trade flows, according
to an industry survey.
The latest Nikkei-Markit manufacturing purchasing managers’ survey
revealed a “marked drop” with business sentiment at its lowest since the
survey began in April 2012, according to IHS Markit, which compiles the
survey.
The drop in confidence, suggested “concerns around global trade flows
may start to impact Vietnamese firms over the coming months”, said IHS
Markit principal economist Andrew Harker.
Moody’s analysts said last month that US trade tensions with China are
expected to deteriorate this year and dampen global growth in 2019.
Still growth in Vietnam’s manufacturing sector remained at robust levels
with the headline index reading at 53.7 in August, down from 54.9 in
July, but clear of the 50-point mark separating expansion from
contraction. The index also notched its thirty-third month straight of
growth.
“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,” Mr Harker added. |