(VOVworld)- Vietnam’s Purchasing Managers’ Index (PMI) rose to a three-month high in August, reflecting a slower deterioration in business conditions, says HSBC.

Source: VNA

According to a recent joint report by the Hong Kong and Shanghai Banking Corporation (HSBC), Vietnam’s PMI posted at 47.9 in August, up from 43.6 in July, indicating continued worsening of the manufacturing sector. However, the latest index represents only a modest rate of deterioration, the least since May. According to HSBC, while business conditions in Vietnam remain challenging, the slowdown in the manufacturing deterioration rate suggests that the economy is likely to gradually recover in the fourth quarter. Vietnam's GDP growth is predicted to slow to 5.1 percent this year, compared to 5.9 percent last year, but rising inflation will prevent the central bank from cutting interest rates to stimulate the economy, which may mean turning to administrative measures to boost spending.