FX.co ★ Vietnam Manufacturing PMI at 4-Month Low

The S&P Global Vietnam Manufacturing PMI declined to 52.5 in January 2025, down from 53 in December, marking its lowest reading since September 2024. Despite the dip, the index maintained positive momentum for the seventh consecutive month, spurred by accelerated output growth driven primarily by a rise in new orders as customer demand improved. The growth in total new business was bolstered by a recovery in new export orders, with companies citing increased demand from various Asian markets, including India. Employment figures rose for the fourth consecutive month, with job creation showing a modest but accelerating pace, reaching its highest since June 2024. On the pricing front, there was a slight easing in input cost inflation from the three-and-a-half-year peak recorded in December, while selling prices surged, hitting their fastest rate of increase since April 2022. Looking forward, business confidence continued to strengthen, with the twelve-month production outlook reaching its highest point since March 2024.