The manufacturing sector in Vietnam continued to contract in June, albeit at a slower pace, the latest survey from S&P Global revealed on Monday with a manufacturing PMI score of 46.2.
That's up from 45.3 in May although it remains beneath the boom-or-bust line of 50 that separates expansion from contraction.
Reports of demand weakness were prevalent throughout the latest survey, with deteriorating market conditions the primary cause of the latest reduction in new orders. Total new business was down for the fourth successive month, and at a solid pace which was nonetheless much softer than that seen in May.
New export orders decreased more quickly than total new business amid declining demand in international markets. Demand weakness fed through to a further reduction in manufacturing production, while there were also a number of reports that power outages due to the heatwave in Vietnam had restricted output.
