Hanoi, Sep 1 (IANS): Vietnam's manufacturing sector saw an intensified downturn during August amid the worst ever Covid-19 wave in the country, a report compiled by the London-based global information provider IHS Markit revealed on Wednesday.

Vietnam's Manufacturing Purchasing Managers' Index (PMI) fell to 40.2 in August, down from 45.1 in July, signaling the worst deterioration in the health of the sector since April 2020, reported Xinhua news agency citing the report.

During the month, output declined at a substantial pace as restrictions concerning Covid-19 response forced a number of manufacturers to close temporarily, while others reported staff shortages and limits on their ability to produce.

The restrictions also accelerated the decline of new orders which fell for the third month and at the fastest pace in 16 months. Business sentiment also hit the lowest point in 15 months in August as the severity of the current Covid-19 wave led a number of firms to predict further restrictions on their operations, said the report.

A PMI reading above 50 indicates an expansion of the manufacturing sector compared to the previous month, below 50 represents a contraction, while 50 represents no change.