HANOI, June 3 (Xinhua) -- Growth was sustained in the Vietnamese manufacturing sector during May while new orders increased solidly again prompting a faster expansion of production, according to a report released by S&P Global Market Intelligence on Monday.
The S&P Global Vietnam manufacturing purchasing managers' index (PMI) was unchanged at 50.3 in May, showing a second consecutive marginal monthly improvement in business conditions in the sector, said the report.
New orders increased solidly again in May as a strengthening demand environment helped firms secure new customers and bring in new business, according to the report.
Andrew Harker, economics director at S&P Global Market Intelligence, said cost inflation in May in Vietnam was the fastest in close to two years, feeding through to higher output prices. This could have the effect of restricting demand in the months to come.
"Overall, companies are optimistic regarding the future, with success in securing new business hopefully acting to overcome the headwinds being felt elsewhere," he said.
The PMI index measures the activity level of purchasing managers in the manufacturing sector. A reading above 50 indicates expansion on a monthly basis in the sector, and a reading below implies contraction. ■