Released by S&P Global on December 1, Vietnam’s Purchasing Managers’ Index (PMI) in November fell to 47.4 from 50.6 in October. The latest reading points to the first contraction in the manufacturing sector since September 2021.

Worsening global economic conditions led to a decline in Vietnam’s manufacturing sector during November. Output, new orders, employment, and purchasing activity all witnessed renewed falls while business confidence fell sharply.

Currency depreciation also impacted upon manufacturers in the month, leading to a slight rise in input costs in the context of reduced selling prices for the first time since August 2020.

The fall to under the 50 no-change mark in November puts an end to a 13-month sequence of improvement.

Mr. Andrew Harker, Economics Director at S&P Global Market Intelligence, said in the October PMI report that they acknowledge that declining demand in the global economy has started to impact on growth in Vietnam’s manufacturing sector.

The November PMI saw new orders, exports, output, employment, and purchasing activity decline. With falling business confidence, Vietnamese manufacturers are likely to have a discouraging end to 2022, Mr. Harker said.