Andrew Harker at IHS Markit, which compiles the survey, said it was a steady start to the year for the Vietnamese manufacturing sector, with growth of output, new orders and employment maintained.

Although rates of expansion generally slowed, the ability of firms to secure a further solid increase in new work bodes well for coming months. IHS Markit is currently forecasting a solid 6.4% increase in gross domestic product (GDP) for 2017, the expert said.

Respondents mentioned increased client demand and new product launches. Meanwhile, new export orders continued to rise amid reports of stronger demand from international clients.

Higher new orders supported an expansion of production in January though the latest rise was only slight and the slowest in the current three-month sequence of growth. Firms generally expect output to rise further over the coming 12 months.

Business sentiment eased from that seen in December but remained strongly positive due to planned company development and expected increases in new orders.

The rate of input cost inflation remained sharp and faster than the series average at the start of 2017, with panelists largely attributing higher input costs to rising prices for raw materials. In turn, firms increased their output prices – the fifth successive month in which this has been the case.

Although manufacturers continued to increase their purchasing activity at a solid pace, the rate of expansion eased markedly and was at a five-month low. Consequently, the rate of accumulation of stocks of purchases also eased and was the weakest in the current seven-month period of rising inventories.

Suppliers’ delivery times improved modestly again in January amid reports from panelists that suppliers had responded positively to requests for faster deliveries.

Finally, stocks of finished goods rose for the fifth month running. A number of respondents indicated that completed products were awaiting delivery, thereby leading to a build-up of inventories.

Source:  thesaigontimes.vn