The manufacturing sector in Vietnam fell into contraction territory in September, the latest survey from S&P Global revealed on Monday with a manufacturing PMI score of 49.7.
That's down from 50.5 in August, and it moves beneath the boom-or-bust line of 50 that separates expansion from contraction.
The most positive aspect of the latest survey was a second successive monthly increase in new orders, with the rate of expansion broadly in line with that seen in the previous survey period. A number of respondents signaled that strength in new export orders, particularly from other Asian economies, had helped to boost total new business.
The rate of expansion in new sales from abroad was solid and more pronounced than that seen in August. Despite the continued pick-up in demand, manufacturers signaled that new order receipts remained relatively modest, leading to a scaling back of production. Output was down slightly following August's rise, with production now having fallen in six of the past seven months.
