S&P Global: Vietnam's manufacturing industry shows signs of stabilisation
(VOVWORLD) - Vietnam's manufacturing industry remained in contraction territory in July but showed some signs of stabilisation as softer declines were seen in output, new orders and employment while business confidence picked up, according to S&P Global.
The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI), released on August 1, posted 48.7 in July, up from 46.2 in June.
The fact that the PMI is still below the benchmark of 50 points reflects that although Vietnam's manufacturing industry has recovered slightly, operating conditions are still deteriorating.
Business confidence picked up to a four-month high in July, but remained relatively muted.
Firms hope that an eventual recovery in customer demand will feed through to renewed production growth, but remain concerned by the current challenges in securing new business, according to S&P Global.