S&P Global has released its Global Vietnam Manufacturing PMI for October and it[s not great. Vietnam’s PMI was 49.6 in October down from 49.7 in September. S&P found that new orders were up but only slightly–not enough to increase production and instead firms drew down on exiting inventory.
Why it matters: Headed into Christmas in the Western hemisphere orders should be increasing for goods to be on shelves in time for the Christmas rush. In this context, this continued contraction does not bode well for Vietnam’s manufacturing sector headed into the new year.