S&P PMI: Vietnam’s factory activity falls to 52.4 in August ’24

The S&P Global Vietnam Manufacturing Purchasing Managers’ Index (PMI) recorded 52.4 points in August, a decrease from July’s 54.7 points but still indicating a strong monthly improvement in business conditions.

Vietnamese manufacturers saw continued growth in output and new orders in the third quarter, though at a slightly slower pace than in July. Despite this, purchasing activity increased significantly, reaching a two-year high.

On the downside, there was a decrease in employment for the first time in three months. Input costs and output prices continued to rise, but inflation rates eased due to competitive pressures.

“As expected, the Vietnamese manufacturing sector saw a slowdown in growth of output and new orders from the particularly elevated rates seen in June and July. Those increases were always going to be hard to sustain and rates of expansion remained marked, so there is little cause for concern on that front.” Andrew Harker, Economics Director at S&P Global Market Intelligence, said.

The health of the sector improved with rapid increases in output and new orders, though the expansion rates eased slightly from the high levels in June and July. Customer demand grew, leading to an increase in new orders and production.

Attribution: S&P Global Vietnam Manufacturing PMI report

Subediting: Y.Yasser