The S&P Global Vietnam Manufacturing PMI slipped to 50.6 in October 2022 from 52.5 in September. The latest result pointed to the 13th straight month of growth in factory activity but the softest in the sequence. New orders rose the least since October 2021, output growth was at a three-month low, and export orders moderated. [Source: Markit Economics]
Also, purchasing activity went up the least in seven months; while the pace of job creation was the slowest since July, with backlogs of work falling amid a lack of pressure on capacity. For the third successive month, delivery times shortened, representing a continued stabilization of supply chains after a sustained period of disruption. Meantime, the rate of input cost inflation ticked higher but remained relatively modest and much softer than seen earlier in the year. Output price inflation also remained muted, and actually softened slightly from September. Finally, sentiment weakened to a 13-month low, amid some concerns about signs of waning demand.
The S&P Global Vietnam Manufacturing Purchasing Managers’ Index measures the performance of the manufacturing sector and is derived from a survey of 400 manufacturing companies. The Index is based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent), with the Delivery Times index inverted so that it moves in a comparable direction. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change.
