The manufacturing sector in Vietnam slipped into contraction in November, the latest survey from S&P Global showed on Thursday with a manufacturing PMI core of 47.4.
That’s down from 50.6 in October, and it moves beneath the boom-or-bust line of 50 that separates expansion from contraction.
Manufacturing new orders decreased for the first time in 14 months midway through the final quarter of the year, often reflecting weakening international demand. In fact, new export orders decreased more quickly than total new business. Some panelists that saw exports fall also mentioned the impact of unfavorable exchange rate movements on prices, and the war in Ukraine.
With new orders falling, Vietnamese manufacturers also lowered production, the first decline since March. The rate of contraction was solid and the fastest since September 2021. Consumer and intermediate goods firms saw output decrease, while investment goods producers signaled a further expansion.